(Figure: Market for Stevia) Stevia is a natural sweetener that is used as a substitute for sugar. Which of the following graphs shows the effect on the supply of bakery desserts made with stevia when the price of stevia rises?

Question

(Figure: Market for Stevia) Stevia is a natural sweetener that is used as a substitute for sugar. Which of the following graphs shows the effect on the supply of bakery desserts made with stevia when the price of stevia rises?
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Quizplus · Accepted Answer

Graph C shows a leftward shift in the supply curve due to the increase in price of stevia, resulting in a decrease in the quantity of bakery desserts made with stevia at any given price. This is because the higher price of stevia makes it more expensive for producers to purchase, and they will therefore decrease their production of stevia-sweetened desserts. Graphs A, B, and D do not show any change in the supply of bakery desserts made with stevia in response to a change in the price of stevia.

(Figure: Market for Stevia) Stevia Is a Natural Sweetener That