-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) a decrease in the number of corn growers
B) a decrease the price of wheat, a substitute in production for corn
C) an increase in the cost of the seed used to grow the corn
D) an decrease in buyers' incomes if corn is an inferior good
E) an increased belief among buyers that corn is healthy

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) a decrease in the number of corn growers 
B) a decrease the price of wheat, a substitute in production for corn 
C) an increase in the cost of the seed used to grow the corn 
D) an decrease in buyers' incomes if corn is an inferior good 
E) an increased belief among buyers that corn is healthy

Quizplus · Accepted Answer

A decrease in the price of wheat, a substitute in production for corn, would increase the supply of corn, shifting the supply curve to the right and causing the new equilibrium to be at point b.

-The Above Figure Illustrates the Market for Corn