Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A rise in wages for peach farm workers, increasing production costs.
B
A medical study proves that peaches significantly reduce cancer risk, increasing consumer demand.
C
A new technology makes it cheaper to produce peaches, increasing supply.
D
A severe drought impacts peach crop yields, reducing availability.
E
Consumers start preferring apples over peaches, decreasing demand.
Understanding the Answer
Let's break down why this is correct
Answer
In a competitive market, the price of peaches can increase when demand for them goes up or when the supply decreases. For example, if a popular health trend suddenly makes peaches very desirable, more people will want to buy them. This increased demand can push prices higher because there may not be enough peaches to satisfy everyone. On the other hand, if a bad weather event, like a frost, damages peach crops, the supply of peaches will decrease. With fewer peaches available and still high demand, sellers can raise the prices.
Detailed Explanation
None of the options would increase the price of peaches. Other options are incorrect because Higher wages for workers mean farms spend more, but this doesn't directly raise prices; If peaches are proven to be very healthy, more people want them.
Key Concepts
Supply and Demand Analysis
Market Equilibrium
Price Elasticity
Topic
Supply and Demand Analysis
Difficulty
easy level question
Cognitive Level
understand
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