The avocado’s demand

The avocado’s demand

The avocado’s demand will face an increment and a shift to the right due to the positive health effects. The rightward shift experienced in the demand curve will cause an increment in the equilibrium and the quantity.

Question 2

More avocados will be produced due to the utilization of the genetically modified method. The adoption of the method will result in an increment in the avocado supply. A rightward shift experienced in the supply curve will result in a decrease and increase in equilibrium price and equilibrium quantity.

Question 3

A decrease in the product’s demand will be experienced due to the rise of the complement. There will be a decrease in the demand for avocado. Therefore, a leftward shift will be experienced in the demand curve, resulting in a fall in quantity and price.

Question 4

An increase in the price of input will result in an increase and reduction in the cost of production and supply, respectively. Thus, there will be a shift of the supply curve to the left. Therefore, a rise and fall in equilibrium price and the equilibrium quantity will be witnessed.