How to Increase the Demand and Price of Olive Oil: Key Factors to Consider
What event would have the desired effect for olive oil producers to sell more olive oil at a higher price?
A) an increase in the price of olive oil presses
B) a decrease in the cost of transporting olive oil to markets
C) an increase in the price of land used to plant olives
D) research finds that consumption of olive oil reduces the risk of heart disease
Answer:
Option D, where research finds that consumption of olive oil reduces the risk of heart disease, would have the desired effect for olive oil producers to sell more olive oil at a higher price.
In order for olive oil producers to sell more olive oil at a higher price, they would need certain events to occur. The event that would have this effect is option D, where research finds that consumption of olive oil reduces the risk of heart disease. This is because the demand for olive oil would increase if consumers perceive it as a healthier option.
On the other hand, options A, B, and C would not directly result in an increase in the demand or price of olive oil. An increase in the price of olive oil presses (option A) would only result in higher production costs for producers, which could potentially increase the price of olive oil but not necessarily increase the demand.
A decrease in the cost of transporting olive oil to markets (option B) would lower the production costs, but again, it would not directly impact the demand or price. Lastly, an increase in the price of land used to plant olives (option C) would also increase the production costs, but it would not necessarily result in a higher demand or price for olive oil.
Research showing the health benefits of olive oil consumption can significantly impact consumer behavior and, in turn, increase the demand and price of olive oil. This highlights the importance of consumer perceptions and awareness in influencing market dynamics for agricultural products.