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 S₂?

Question

Quizplus · Accepted Answer

The development of a more effective insecticide for corn rootworm would reduce the costs of producing corn and increase the supply at any given price, as shown by the rightward shift from S₁ to S₂. This is a shift of the entire supply curve, not a movement along it caused by changes in consumer tastes or incomes. The price of fertilizer may affect the cost of production, but it is not the only factor that causes the shift in supply.

Refer to the Above Diagram, Which Shows Three Supply Curves