Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
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Answer
When wages for workers at a peach farm increase, the cost of producing peaches goes up. This means that farmers might produce fewer peaches because it costs them more to grow and harvest them. On the other hand, if more people become aware of the health benefits of peaches, they may want to buy more peaches, which increases demand. However, if the supply of peaches decreases due to higher production costs, it can lead to less peaches being available in the market. For example, if a farmer usually sells 100 peaches but cuts back to 80 due to higher wages, even with increased interest in peaches, the total quantity sold may still drop.
Detailed Explanation
When wages increase, farmers might raise prices to cover costs. Other options are incorrect because This answer assumes that higher wages will always lead to fewer peaches sold.
Key Concepts
Supply and Demand Analysis
Market Equilibrium
Consumer Behavior
Topic
Supply and Demand Analysis
Difficulty
hard level question
Cognitive Level
understand
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