question archive Suppose there is a bumper crop of asparagus due to farmers enjoying perfect weather throughout the growing season
Suppose there is a bumper crop of asparagus due to farmers enjoying perfect weather throughout the growing season
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Suppose there is a bumper crop of asparagus due to farmers enjoying perfect weather throughout the growing season. Based on this, which of the following statements is true?
a. The price of asparagus will fall.
b.The marginal product of the workers will decrease.
c.There is an increase in the value of the worker's marginal product.
d.The value of the worker's marginal product will decrease.
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The statement (a.) The price of asparagus will fall is TRUE.
Bumper crop production of asparagus due to favourable weather condition allow the farmers to increase the amount of supply. The farmers can now supply greater quantities of goods at the various price levels. This will lead to increase in the supply of the good, which will cause a rightward shift in the supply curve given the demand of the good. The rightward shift in the supply curve will thus lead to decrease in the price of good.
