High School

What will happen to the equilibrium quantity and price of potatoes if the population increases and a new, higher-yielding variety of potato plant is developed?

Answer :

Final answer:

An increase in population and the development of a new potato plant variety can affect the equilibrium quantity and price of potatoes.

Explanation:

Equilibrium quantity and price of potatoes are impacted by an increase in population and the development of a new, higher-yielding variety of potato plant. When the population increases, the demand for potatoes rises, which can lead to a higher equilibrium quantity and price. The introduction of a new, higher-yielding potato plant variety can increase the supply of potatoes, potentially leading to a decrease in the equilibrium price but an uncertain effect on the equilibrium quantity.

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