Use the following to answer question:
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The graph shows how supply and demand might shift in response to specific events.Suppose a drought destroys one-third of the nation's peanut crop.Which panel BEST describes how this will affect the market for peanuts?
A)Panel A
B)Panel B
C)Panel C
D)Panel D

Question

Use the following to answer question: 
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The graph shows how supply and demand might shift in response to specific events.Suppose a drought destroys one-third of the nation's peanut crop.Which panel BEST describes how this will affect the market for peanuts?
A)Panel A 
B)Panel B 
C)Panel C 
D)Panel D

Quizplus · Accepted Answer

A drought destroying one-third of the peanut crop would decrease the supply of peanuts, shifting the supply curve to the left, which is depicted in Panel C.

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