Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Supply decreases and demand increases
B
Both supply and demand decrease
C
Supply increases and demand decreases
D
Supply remains the same and demand decreases
Understanding the Answer
Let's break down why this is correct
Answer
When wages for peach farm workers increase, it means that farmers will have to pay more to hire their workers. This could lead to higher production costs for peaches, which might cause some farmers to produce fewer peaches because they cannot afford to pay higher wages and still make a profit. On the other hand, if a health study shows that peaches can reduce cancer risk, more people will want to buy peaches because they see them as healthy. This increase in demand could lead to higher prices for peaches, as consumers are willing to pay more for something that benefits their health. Therefore, the market for peaches might experience a mix of higher prices due to increased demand and potentially lower supply if farmers cut back on production because of higher labor costs.
Detailed Explanation
When workers earn more, they can buy more peaches. Other options are incorrect because This answer suggests both supply and demand go down; This option says supply goes up and demand goes down.
Key Concepts
Supply and Demand
Market Equilibrium
Consumer Behavior
Topic
Supply and Demand Analysis
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.