Explain how a change in one of the determinants of supply could lead to a decrease in the price of rice.

Supply is the quantity of a certain product that a producer is willing and able to supply into a market at a given price, in a given time period. Consider the market for rice: an abnormally fruitful harvest would mean that the supply curve in the rice industry for the given year would shift to the right. Assuming that the demand curve for rice remains the same, the increase in supply will lead to a rightward shift of the market equilibrium (i.e. the equilibrium price will fall and the equilibrium quantity will increase). 

JZ
Answered by Julia Z. Economics tutor

12268 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

A government decides to Impose an indirect tax on fast food. Discuss the effects for the stakeholders in these markets.


Why GDP is not a good measurement of standards of living.


explain how price act as a signal to consumer and producer?


Explain the meaning of the law of demand; distinguish between movements along and shifts of the demand curve.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning