The kale fad starts to fade as people realize it is just bitter lettuce. At the same time advances in agriculture reduce the cost of growing all leafy vegetables (including kale). If these two things happen at the same time we would expect the market price of kale to fall and the equilibrium quantity to fall as well.
True or Flase
Explain
Answer
True
The two curves; demand and supply curve shift away from each other causing a decrease in both price and equilibrium quantity
Explanation
This is true because when the cost of production that is result from the advances in agriculture, then this lower costs would result in an increase in output, shifting the supply curve outward (to the right) and the supplier will be willing sell a larger quantity at each price level which we know that the quantity supplied in such a case increases. On the other hand, the price will fall and the equilibrium quantity will also reduce because of the downward sloping demand curve and upward sloping supply curve which shift away from each other
