Final answer:
An increased demand for organic foods leads to higher prices and an increased quantity supplied, as the market moves up the supply curve. Over time, more organic farming can increase the supply, potentially stabilizing prices if supply growth exceeds demand growth. However, higher organic farming costs may keep prices higher than non-organic foods. Option A is the correct answer.
Step-by-step explanation:
An increase in the demand for organic foods typically leads to higher prices due to the theories of supply and demand. As consumers become more health-conscious and have higher incomes, their preferences shift towards safer, organic options, resulting in increased demand.
When there is an increase in demand, the demand curve shifts to the right. In response to higher prices, producers are motivated to supply a greater quantity, moving up along the supply curve. Over time, as more farmers convert to organic farming, the supply curve itself may shift to the right, potentially balancing out prices if the increase in supply is large enough compared to the increase in demand.
However, higher production costs associated with organic farming may keep these foods at a premium compared to non-organic options. Therefore, the correct answer to the question is: a. an increase in the price, and hence an increase in the quantity supplied of organic foods.