Question: Over the last decades, there was a decrease in the price of strawberries in the U . S . market, despite growing consumption per person.
Over the last decades, there was a decrease in the price of strawberries in the US market, despite growing consumption per person. If the market is competitive, how do we explain this decrease in price?
Bad weather and diseases caused the supply of strawberries to decrease.
The prices of substitutes to strawberries increased.
Technology innovations and importation allowed the supply of strawberries to expand by more than the demand.
Income of consumers increased and strawberries are an inferior good.
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