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Demand, supply and change in equilibrium Consider the market for organic vegetables

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Demand, supply and change in equilibrium

Consider the market for organic vegetables. The following events, A and B, impact both supply and demand of organic vegetables simultaneously.

For each event, identify

• the direction of the shift of the demand curve
• the direction of the shift of the supply curve
• the changes to the equilibrium price and quantity

A. The price of natural fertilizer used in organic gardening decreases. At the same time the income of buyers in this market decreases.

B. Organic farmers develop new gardening techniques to increase their produce. At the same time there is wide publicity in this market of health benefits of eating organic vegetables.