Refer to the above diagram, which shows three supply curves for corn.Which of the following would cause the change in the supply of corn illustrated by the shift from S₁ to S₃?

Question

Quizplus · Accepted Answer

An increase in the price of irrigation equipment would increase the cost of production for corn farmers, causing a decrease in the supply of corn and a shift of the supply curve to the left from S₁ to S₃. A decrease in the price of fertilizer would decrease the cost of production and increase the supply, leading to a shift to the right of the supply curve. An increase in consumer incomes or a change in consumer tastes would affect the demand for corn, not the supply.

Refer to the Above Diagram, Which Shows Three Supply Curves