Question

olive oil producers want to sell more olive oil at a higher price. which of the following events would have this effect?
a decrease in the cost of transporting olive oil to markets
research finds that consumption of olive oil reduces the risk of heart disease
an increase in the price of land used to plant olives
an increase in the price of olive oil presses
question 31
1 pts
in recent years the cost of producing organic produce in the u.s. has decreased largely due technological advancement. at the same time, more and more americans prefer organic produce over conventional produce. which of the following best explains the effect of these events in the organic produce market?
both the supply and demand curves have shifted to the right. as a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
the supply curve has shifted to the left and the demand curve has shifted to the right. as a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
the supply curve has shifted to the left and the demand curve has shifted to the right. as a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
both the supply and demand curves have shifted to the right. as a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.

Explanation:

• For the first question:
• A decrease in transportation cost would increase supply (lower costs for producers), likely leading to a lower price (contrary to producers' goal of higher price).
• Research finding olive oil reduces heart - disease risk would increase demand. When demand increases (assuming supply is relatively stable in the short - term), both price and quantity sold increase.
• An increase in land price (input cost) would decrease supply, which might increase price but decrease quantity (not meeting the goal of more quantity sold).
• An increase in olive - oil press price (input cost) would decrease supply, likely increasing price but decreasing quantity.

• For the second question:
• A decrease in production cost (due to technological advancement) shifts the supply curve to the right.
• More Americans preferring organic produce shifts the demand curve to the right.
• When both supply and demand shift to the right:
• The equilibrium quantity will definitely increase.
• The effect on price depends on the magnitude of the shifts. If the supply shift is larger than the demand shift, price may decrease; if the demand shift is larger, price may increase; if they are of similar magnitude, price may stay relatively the same.

Answer:

• First question: research finds that consumption of olive oil reduces the risk of heart disease.
• Second question: Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.