Suppose that both the demand for and supply of agricultural products increases.If the increase in the supply of agricultural products is greater than the increase in demand,prices of agricultural products
A)increase.
B)decrease.
C)remain the same.
D)may increase,decrease,or remain the same.

Question

Quizplus · Accepted Answer

When the supply of agricultural products increases more than the demand, it creates a surplus. The surplus will put downward pressure on prices since suppliers have to sell off excess inventory. Therefore, prices of agricultural products will decrease.

Suppose That Both the Demand for and Supply of Agricultural