Use the following diagram to answer the following questions.

-Refer to Diagram 4-2. Suppose equilibrium price and quantity exchanged are initially P₃ and Q₁, respectively. If there is an advance in the technology used to harvest peaches, then the new equilibrium price and quantity of peaches exchanged will be:

Question

Use the following diagram to answer the following questions.
 
-Refer to Diagram 4-2. Suppose equilibrium price and quantity exchanged are initially P₃ and Q₁, respectively. If there is an advance in the technology used to harvest peaches, then the new equilibrium price and quantity of peaches exchanged will be:

Quizplus · Accepted Answer

An advance in technology used to harvest peaches would likely increase the supply of peaches, shifting the supply curve to the right. This would result in a lower equilibrium price (P₁) and a higher quantity exchanged (Q₃) compared to the initial equilibrium.

Use the Following Diagram to Answer the Following Questions