-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?
A) an increase in consumers' preferences for corn
B) an increase in consumers' income if corn is a normal good
C) an increase in labor costs of producing corn
D) an improvement in the technology of producing corn
E) an increase in consumers' income if corn is an inferior good

Question

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?
A) an increase in consumers' preferences for corn 
B) an increase in consumers' income if corn is a normal good 
C) an increase in labor costs of producing corn 
D) an improvement in the technology of producing corn 
E) an increase in consumers' income if corn is an inferior good

Quizplus · Accepted Answer

An improvement in the technology of producing corn would shift the supply curve to the right, leading to a new equilibrium at point "b" with a lower price and higher quantity.

-The Above Figure Illustrates the Market for Corn