New fertilizers reduce the cost of producing tomatoes. What happens to the equilibrium price and quantity of tomatoes?

Question

Quizplus · Accepted Answer

New fertilizers reducing the cost of producing tomatoes make it cheaper for producers to supply tomatoes, leading to an increase in supply. When supply increases, the equilibrium price typically falls (because tomatoes are cheaper to produce, so they can be sold for less), and the equilibrium quantity rises (because more tomatoes are available at lower prices, encouraging more purchases).

New Fertilizers Reduce the Cost of Producing Tomatoes