Use the figure below to answer the following question(s) .
Figure 3-8

In Figure 3-8, if the initial demand and supply for soybeans were D ₁ and S ₁, how would a decrease in the cost of producing soybeans affect the market for soybeans?

Question

Use the figure below to answer the following question(s) .
Figure 3-8

In Figure 3-8, if the initial demand and supply for soybeans were D ₁ and S ₁, how would a decrease in the cost of producing soybeans affect the market for soybeans?

Quizplus · Accepted Answer

A decrease in the cost of producing soybeans would lead to an increase in the supply of soybeans, shifting the supply curve to the right from to _{2. This would cause a decrease in the equilibrium price from P ₁ to P ₀, and an increase in the equilibrium quantity from Q ₁ to Q ₂. Therefore, choice B is the correct answer.}

Use the Figure Below to Answer the Following Question(s)