Answer to Question #323606 in Microeconomics for Kelvin

Question

Decrease in population rate, increase in the cost of fertiliser, which used to grow vegetables, explain how the market for vegetables will be affected by theses changes

Answer 1

A decline in population causes a movement in the demand curve inwards, whereas an increase in fertilizer costs affects the quantity of supply to the market because farmers will no longer be able to afford what they could before the prices climbed, causing a shift in the supply curve inwards as well.