What consequence follows a decrease in production costs for organic produce paired with a rising consumer preference for it?

When production costs for organic produce decrease, producers are able to create their goods at a lower cost. This situation typically leads to an increase in supply, as producers are encouraged to provide more organic produce to the market. In economic terms, the supply curve shifts to the right, indicating that at each price level, more quantity is available.

Simultaneously, a rising consumer preference for organic produce suggests an increase in demand. Consumers are more willing to purchase organic goods as they value the health benefits, environmental considerations, or other factors that influence their preferences. This increase in demand shifts the demand curve to the right as well, indicating that at each price level, consumers are now willing to buy more.

When both the supply and demand curves shift to the right, the equilibrium quantity increases because there is a greater quantity available in the market that matches the higher willingness to purchase. Although the price might be affected, the key outcome is the increase in equilibrium quantity due to both factors working in tandem—more supply and greater demand.

Understanding these dynamics illustrates the interconnectedness of supply and demand in a market and emphasizes how changes in production costs and consumer preferences can jointly impact market outcomes.