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Lettuce Farmer Paper

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Assuming I am a lettuce farmer, what factors would motivate me to produce more lettuce on the market? The market for lettuce do not vary much since lettuce tends to look alike, and there are plenty of lettuce farmers like me in this market. There’s also “perfect information”, where the quality and price of lettuce is relatively known to all consumers.If I produce more lettuce, I can sell it at a lower price. In this lettuce market, we have the perfect competition, meaning, there are other competitors out there selling the same product for the, relatively, same price. As a lettuce farmer, I must produce more lettuce to maximize profits.
. Other factors would include the supply and demand of lettuce. What dictates supply and demand is pricing. If the price of lettuce increase the quantity demanded will decrease. In that same manner, the quantity of the supply would have increased as well. As shown in the graph below:

The point where the supply and demand curve intersect is called the equilibrium point. It is also where the market for lettuce is most efficient and where markets will go towards.

If the price of lettuce increases, the quantity supplied will increase.

Price will increase if the demand shifts to the right, thus the increase in buyers. Income would also increase since lettuce is considered a normal good. Other various deciding factors are tastes and preferences, which generally has a positive effect. If the price of complement increases, such as bread, then the demand curve would shift to the right. If prices of substitutes, such as cabbage, increase, then the demand curve would shift to the left. If the demand for bread has increased, it would be a compelling factor to produce more lettuce, as bread and lettuce are complementary goods.

If there was a decrease in prices for fertilizer for the lettuce, that would

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