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

A. This will lead to a reduction in the cost of production, which will make the sellers offer more quantity for same price leading to a rightward shift in the supply curve. Reduction in the income of buyers will make them buy less quantity for same price, leading to a leftward shift in demand curve. The impact on equilibrium price and quantity will be indeterminate (it can be higher or lower, dependiing on the relative quantum of the shift in the two curves, since they are shifting in opposite directions)

B. This has the same impact as above, meaning that the supply curve will shift rightwards since improved productivity implies reduced cost and they will offer more quantity at the same price. Wide publicity on health benefits will encourage more buyers to buy more at the same price leading to a rightward shift in demand curve. Since both curve shift to the right, it will lead to an increase in equilibrium quantity. Equilibrium price may be higher or lower depending on the relative impact of the supply curve and demand curve shfit since they pull price in differnt directions.