An increase in the rice harvest, all things being equal, may cause____________
Answer Details
An increase in the rice harvest, all things being equal, is likely to cause the price of rice to fall substantially. This is because an increase in the supply of rice will result in a surplus, which will lead to a decrease in price as producers try to sell their excess rice. Conversely, if there is a decrease in the rice harvest, all things being equal, the price of rice is likely to increase due to a shortage of supply. Therefore, the law of supply and demand states that an increase in supply results in a decrease in price, while a decrease in supply results in an increase in price.