When increases in the supply of an agricultural product are much greater than the increases in demand for it over time, then the price

Question

Quizplus · Accepted Answer

When the supply of an agricultural product increases much greater than the increase in demand over time, it leads to a surplus of the product in the market. This surplus causes the price of the product to decrease as suppliers try to get rid of the excess supply. As the price decreases, the quantity demanded by consumers increases, and the quantity supplied by producers decreases. Thus, the price of agricultural products will decrease, but the quantity of agricultural products will increase. Therefore, option D is the correct answer.

When Increases in the Supply of an Agricultural Product Are