If E were the old equilibrium in the wheat market depicted in the figure below and E' were the new one, which of the following might have caused the change?
A)Good weather caused a supply shift.
B)Good weather caused a demand shift.
C)Bad weather caused a supply shift.
D)Bad weather caused a demand shift.
E)Consumer incomes changed, causing a supply shift.

Question

If E were the old equilibrium in the wheat market depicted in the figure below and E' were the new one, which of the following might have caused the change? 
A)Good weather caused a supply shift. 
B)Good weather caused a demand shift. 
C)Bad weather caused a supply shift. 
D)Bad weather caused a demand shift. 
E)Consumer incomes changed, causing a supply shift.

Quizplus · Accepted Answer

Good weather caused a supply shift, which is represented by the rightward shift in the supply curve from S to S'. This would lower the equilibrium price from P to P' and increase the equilibrium quantity from Q to Q', resulting in the new equilibrium point E'.

If E Were the Old Equilibrium in the Wheat Market