CA Foundation Exam > CA Foundation Questions > If good growing conditions increases the supp...
Start Learning for Free
If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought
- a)increases and the price might rise, fall or not change
- b)doesn’t change but the price rises
- c)doesn’t change but the price falls
- d)increases and the price rises
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
If good growing conditions increases the supply of strawberries and ho...
Explanation:
The relationship between supply and demand determines the price and quantity of a product bought and sold in the market. In the case of strawberries, good growing conditions increase the supply, while hot weather increases the demand. Let's understand how these factors affect the quantity and price of strawberries.
1. Increase in supply:
Good growing conditions increase the supply of strawberries, which means that farmers can produce more strawberries at the same cost. This leads to a rightward shift in the supply curve. As a result, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase as the supply increases.
- The equilibrium price of strawberries might rise, fall, or remain unchanged, depending on the elasticity of demand.
2. Increase in demand:
Hot weather increases the demand for strawberries, as people prefer to eat more strawberries during summers. This leads to a rightward shift in the demand curve. As a result, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase as the demand increases.
- The equilibrium price of strawberries will rise, as the demand curve intersects with the new supply curve.
3. Combined effect:
When both supply and demand factors work simultaneously, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase due to the increase in supply and demand.
- The equilibrium price of strawberries might rise, fall, or remain unchanged, depending on the magnitude of the shifts in the supply and demand curves.
Conclusion:
In summary, if good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought increases, and the price might rise, fall, or not change, depending on the elasticity of demand and the magnitude of the shifts in the supply and demand curves.
The relationship between supply and demand determines the price and quantity of a product bought and sold in the market. In the case of strawberries, good growing conditions increase the supply, while hot weather increases the demand. Let's understand how these factors affect the quantity and price of strawberries.
1. Increase in supply:
Good growing conditions increase the supply of strawberries, which means that farmers can produce more strawberries at the same cost. This leads to a rightward shift in the supply curve. As a result, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase as the supply increases.
- The equilibrium price of strawberries might rise, fall, or remain unchanged, depending on the elasticity of demand.
2. Increase in demand:
Hot weather increases the demand for strawberries, as people prefer to eat more strawberries during summers. This leads to a rightward shift in the demand curve. As a result, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase as the demand increases.
- The equilibrium price of strawberries will rise, as the demand curve intersects with the new supply curve.
3. Combined effect:
When both supply and demand factors work simultaneously, the equilibrium price and quantity of strawberries will change as follows:
- The equilibrium quantity of strawberries will increase due to the increase in supply and demand.
- The equilibrium price of strawberries might rise, fall, or remain unchanged, depending on the magnitude of the shifts in the supply and demand curves.
Conclusion:
In summary, if good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought increases, and the price might rise, fall, or not change, depending on the elasticity of demand and the magnitude of the shifts in the supply and demand curves.
Free Test
FREE
| Start Free Test |
Community Answer
If good growing conditions increases the supply of strawberries and ho...
Here demand of strawberries must rise as people want to purchase them more,but price depend on whether demand is more then the supply,ordwmand is less then the supply or demand is equal to supply
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer?
Question Description
If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer?.
If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If good growing conditions increases the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries boughta)increases and the price might rise, fall or not changeb)doesn’t change but the price risesc)doesn’t change but the price fallsd)increases and the price risesCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup