The above figure illustrates the market for corn. If point 'a' represents the original equilibrium and point 'b' the new equilibrium, which of the following could have caused the change?

Question

Quizplus · Accepted Answer

If the price of wheat, a substitute for corn in production, decreases, farmers may switch to producing more wheat and less corn, leading to a decrease in the supply of corn and an increase in price. This would cause a shift from the original equilibrium point 'a' to the new equilibrium point 'b'. The other options do not directly impact the supply or demand of corn, and therefore would not cause a shift in the market equilibrium.

The Above Figure Illustrates the Market for Corn