Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Prices will increase
B
Prices will decrease
C
Prices will remain the same
D
Prices will fluctuate wildly
Understanding the Answer
Let's break down why this is correct
Answer
When there is an increase in the supply of agricultural products, it means that farmers are producing more of these goods than before. If the demand for these products stays the same, there will be more available than people want to buy. This situation usually leads to a decrease in the price of those products because sellers may lower their prices to attract buyers who have more options. For example, if there is a bumper crop of apples and everyone has plenty to choose from, sellers might reduce the price to encourage people to purchase them. Overall, increasing supply with constant demand often results in lower prices in the market.
Detailed Explanation
When more products are available but people want the same amount, prices usually go down. Other options are incorrect because Some might think more supply means higher prices; It's a common idea that prices stay the same with more supply.
Key Concepts
supply and demand
Topic
Market Dynamics in Agriculture
Difficulty
easy level question
Cognitive Level
understand
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