A beneficial technological change is developed in the production of cranberries. At the same time, scientists discover that cranberries have significant health benefits. This will result in:

Question

Quizplus · Accepted Answer

The technological change will result in an increase in the supply of cranberries, which will shift the supply curve to the right, leading to a decrease in the equilibrium price and an increase in the equilibrium quantity. The discovery of significant health benefits will increase the demand for cranberries, which will shift the demand curve to the right, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. The price may increase, decrease, or remain the same depending on the magnitude of the shifts in supply and demand.

A Beneficial Technological Change Is Developed in the Production of Cranberries