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A news story says a healthy diet helps people live longer and recommends eating less meat and more vegetables. What will probably happen to the overall supply of vegetables over the next year? (1) The supply will probably go up. (2) The supply will probably go down.

A news story says a healthy diet helps people live longer and recommends eating less meat and more v...
Answer
  1. The supply will probably go up. The news story is likely to increase demand for vegetables, which raises the market price and gives farmers an incentive to produce more; over the next year, growers can plant more and expand output, increasing overall supply.
Explanation

What the news story changes in the market

The story encourages people to buy and eat more vegetables. That is a change in consumers’ preferences, so the first thing that shifts is demand, not supply.

How higher demand affects producers

When demand increases, the market price of vegetables tends to rise. A higher price makes producing vegetables more profitable, so growers respond by supplying a larger quantity.

Why the supply is likely to rise “over the next year”

In the very short run, farmers cannot instantly create more vegetables, so you mainly see a higher price and a higher quantity sold.

But the question asks about the next year, which gives producers time to adjust:

  • plant more acres of vegetables,
  • switch some land from other crops,
  • invest in greenhouses, irrigation, or labor.

Those adjustments increase the overall supply of vegetables, meaning the supply curve shifts to the right.

Choosing between the options

  • (1) Supply will probably go up: matches the producer response to higher demand over time.
  • (2) Supply will probably go down: would require something like higher input costs, bad weather, or regulations reducing production, which the story does not suggest.
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Skills You Achive
supply-and-demand market equilibrium economic reasoning

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