Question

A California biotechnology firm submitted a tomato that will not rot for weeks to the U.S. Food and Drug Administration. It designed such a fruit by changing the genetic structure of the tomato. What effect will this technological change have on:

1. The price of tomatoes?
2. Farmers who grow tomatoes?
3. The geographic areas where tomatoes are grown?
4. Where tomatoes are generally placed on salad bars in winter?

Answer 1

A California biotechnology firm submitted a tomato that will not rot for weeks to the U.S. Food and Drug Administration. It designed such a fruit by changing the genetic structure of the tomato. This will effect :-

The Price of tomatoes - This will effect price of tomatoes negatively as well as positively. because in a season of tomatoes, when a farmer grows tomatoes, they have to sell them immediately because tomatoes rots very soon. so this will increase the supply of tomatoes in the market. so the price of the tomatoes are fallen. And if the new variety of tomatoes are not rot early, they can stock their tomatoes and control the supply in the market. so this will maintain the price.and price will not fallen highly.

And in a off season of tomatoes, when the supply of tomatoes are less, the price of tomatoes is high. And if new variety can kept the tomatoes longer, the farmers can sell their tomatoes in off season also. so the supply of tomatoes in off season is increase and the price will not risen highly.

The Farmers who grows tomatoes - the income of the farmers will increase because previously, the farmers have to sell their tomatoes in low price because tomatoes are rots soon. so if the farmers can stock their the new variety of the tomatoes, they can sell their tomatoes as per the price. so the farmers will not face financial loss.

The geographically areas where tomatoes are grown - when the profitability in tomatoes is increasing, many more people will Interest in this business. so the value of this geographic areas will rise.

Where tomatoes are generally placed on salad bars in winter - When the tomatoes are available all the time in a year, the people who use salad bars, have got tomatoes all the time. so it may be decrease the Interest or value of tomatoes in salad bars. and the demand of tomatoes will fallen.