Scenario 14-5 a study sponsored by the food consumer safety board found that consumption of irradiated tomatoes increased the health of laboratory rats. as a result of national press coverage of the report, the demand for irradiated tomatoes increased dramatically. organic farmers were able to switch from organic production of tomatoes to irradiated production with no additional cost. assume that the tomato market satisfies all of the assumptions of perfect competition. refer to scenario 14-5. as a result of the increase in the demand for tomatoes, we would predict that in the short run that the a. production of tomatoes would be at efficient scale. b. price of tomatoes would rise.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerinnovative culture;