A drought in the Midwest will raise the price of wheat because of a
A) leftward shift in the supply curve.
B) rightward shift in the supply curve.
C) leftward shift in the demand curve.
D) rightward shift in the demand curve.

Question

Quizplus · Accepted Answer

A drought in the Midwest will reduce the supply of wheat, shifting the supply curve to the left. This will lead to a higher price of wheat, as the market adjusts to the reduced supply.

A Drought in the Midwest Will Raise the Price of Wheat