An advance in farm technology that results in an increased market supply is
A)good for farmers because it raises prices for their products but bad for consumers because it raises prices consumers pay for food.
B)bad for farmers because total revenue will fall but good for consumers because prices for food will fall.
C)good for farmers because it raises prices for their products and also good for consumers because more output is available for consumption.
D)bad for farmers because total revenue will fall and bad for consumers because farmers will raise the price of food to increase their total revenue.

Question

Quizplus · Accepted Answer

An increase in market supply typically leads to a decrease in prices, which is beneficial for consumers but can result in lower total revenue for farmers if the price drop outweighs the increase in quantity sold.

An Advance in Farm Technology That Results in an Increased