📚 Learning Guide
Supply and Demand Analysis
easy

If wages for peach farm workers increase while a health study shows peaches reduce cancer risk, what happens to the market for peaches?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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.