Question
Which of the following could cause the supply of carrots to decrease? a. Consumers' incomes decrease. b. There is a technological advance in carrot production. c. The number of farmers growing carrots increases. d. Fertilizer costs increase.
Ask by Klein Lang. in the United States
Jan 24,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
Fertilizer costs increasing can decrease the supply of carrots.
Solution
The supply of a good is influenced by factors such as input costs, technology, and the number of sellers in the market. Let's analyze each option:
a. **Consumers' incomes decrease.**
- This affects **demand**, not supply. Lower incomes might reduce the quantity of carrots consumers are willing to buy, but it doesn't directly impact the supply side.
b. **There is a technological advance in carrot production.**
- Technological advancements typically **increase supply** by making production more efficient and reducing costs.
c. **The number of farmers growing carrots increases.**
- An increase in the number of producers in the market **increases supply**.
d. **Fertilizer costs increase.**
- Fertilizer is a key input in carrot production. If the cost of fertilizer rises, production becomes more expensive, leading to a **decrease in supply** as producers may supply less at the same price or require higher prices to maintain the same supply level.
**Correct Answer:**
**d. Fertilizer costs increase.**
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution The Deep Dive
One significant factor that could cause the supply of carrots to decrease is an increase in fertilizer costs. When the costs of essential inputs rise, farmers may produce less due to tighter profit margins, leading to a diminished supply of carrots in the market. Additionally, if consumers' incomes decrease, they might buy fewer carrots or switch to cheaper alternatives, potentially shifting the market dynamics. However, the supply itself is directly affected by producers' costs and capabilities rather than by consumer behavior.
