Question 1.
As the production will increase, the supply curve will shift to the right, therefore the equilibrium price will decrease, (Figure 1): Figure 1. The increase in production on the mango market Thus, as the quantity of production has increased by 30 % from Q0 to Q1, the supply curve shifts from S0 to S1 and the equilibrium price decreases from P0 to P1.
Question 2.
In agriculture, the term bumper harvest means the unusually high production of a crop. Though some politicians might claim that this benefits the farmers, actually that is not exactly so. Firstly, with the increased production the ...