3.5 Market Effects of Changes in Supply
Figure 3.4
-Figure 3.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from

Question

3.5 Market Effects of Changes in Supply
  Figure 3.4
-Figure 3.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from

Quizplus · Accepted Answer

An increase in the number of Mexican food producers would cause an increase in the supply of tacos, which would result in a rightward shift of the supply curve from S₀ to S₂. This would lead to a lower equilibrium price and a higher equilibrium quantity of tacos, moving from point a to point c on the demand curve. Therefore, the correct answer is D.