- Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Transport costs for farm products increase.(See Figure 29.4. )
A)a.
B)b.
C)c.

Question

- Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: Transport costs for farm products increase.(See Figure 29.4. )
A)a. 
B)b. 
C)c.

Quizplus · Accepted Answer

An increase in transport costs for farm products would likely decrease the supply of wheat, shifting the supply curve to the left. This is typically represented by diagram 'a' in economic models.

- Select the Letter of the Diagram in Figure 28