Other things constant, which of the following is likely to shift the market supply curve for corn in the short run?

Question

Quizplus · Accepted Answer

A change in the prices of pesticides will directly affect the production cost of corn. An increase in the price of pesticides will increase the cost of producing corn, causing a decrease in supply. A decrease in the price of pesticides will reduce the cost of producing corn, causing an increase in supply. Therefore, B is likely to shift the market supply curve for corn in the short run.

The other options are less likely to shift the market supply curve for corn in the short run. A change in the price of corn (A) may cause a movement along the supply curve, but not a shift. Changes in the number of corn consumers (C), the expectations of consumers about the future price of corn (D), and the money income of corn consumers (E) will affect the demand for corn, not the supply in the short run.

Other Things Constant, Which of the Following Is Likely to Shift