An increase in the rice harvest, all things being equal, may cause____________

1. Analyze the question The question asks what happens when the rice harvest increases, with other things equal (ceteris paribus). A bigger harvest means a change in supply, not demand.

2. Explain the concept

• A larger harvest means more rice available, so the supply curve shifts to the right.
• Demand stays the same because "all things being equal" rules out any change in tastes, income, or the prices of related goods.
• With the same demand and higher supply, there is a surplus at the old price. The equilibrium price falls and the quantity traded rises.
• Agricultural goods like rice usually have inelastic demand. People don't buy much more rice just because it is cheaper. So a large rise in supply causes a substantial fall in price.

3. Step-by-step solution

• Option A (price increases substantially): wrong. More supply pushes price down, not up.
• Option B (price falls substantially): correct. Supply rises, demand is unchanged and inelastic, so price falls sharply.
• Option C (demand falls substantially): wrong. A change in supply moves price and quantity demanded along the demand curve. It does not shift demand.
• Option D (farmers' incomes more than doubled): wrong. With inelastic demand, a price fall usually reduces total revenue, so farmers' incomes would not rise by that much.

4. Answer The correct option is **B. Price to fall substantially.

5. Exam tip For "increase in harvest" or "bumper harvest" questions, think: supply up → price down. Remember that demand does not change when supply changes. Only the quantity demanded changes, as a movement along the demand curve. Agricultural products have inelastic demand, which is why farmers often earn less in a bumper harvest year.