The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

Question

Quizplus · Accepted Answer

Firms can easily switch between growing cotton and tobacco. If the price of cotton goes up, firms are incentivized to switch from growing tobacco to cotton, thus decreasing the supply of tobacco and shifting the supply curve to the left. Similarly, if the price of cotton goes down, firms are incentivized to switch from growing cotton to tobacco, thus increasing the supply of tobacco and shifting the supply curve to the right.

The Most Plausible Reason Why Changes in the Price of Cotton