An increase in demand for healthy foods causes producers to decrease supply in order to increase prices.

Name: An increase in demand for healthy foods causes producers to decrease supply in order to increase prices.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in demand for healthy foods would typically cause producers to increase supply in order to meet the demand and potentially lower prices due to economies of scale. Decreasing supply would only lead to potential loss of market share to competitors who could meet the demand.

An Increase in Demand for Healthy Foods Causes Producers to Decrease