The market for organic cabbage is represented by QD = 1,200…
The market for organic cabbage is represented by QD = 1,200 – 75P and QS = 425P – 300, where P is the price per head of cabbage and Q measures the number of heads of cabbage per week. Suppose the price of organic fertilizer falls, making sellers willing to sell 100 more heads of cabbage per week at every price. What happens to producer and consumer surplus as a result of this change?