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

Question

Quizplus · Accepted Answer

An increase in farm technology typically increases market supply, which can lead to lower prices for consumers. However, for farmers, this can result in lower total revenue if the price drop outweighs the increase in quantity sold.

What Impact Does an Increase in Farm Technology That Increases