Answer to Question #250644 in Microeconomics for kml

Question

spores of farmer find that we cancel any amount of city produce at current market price but can’t sell any amount if he tries to charge a price that higher. Draw an

Appropriate demand or supply crap to get his experience

appropriate demand or supply graph to get his experience

Answer 1

From the demand curve, we find that the current market price is OP. If the farmer increases price above OP, rival suppliers do not increase their prices because they want to keep their customers. Thus, the farmer won't sell any amount at the price higher than the prevailing market price, because consumers will shift to the other suppliers operating at market price.