Refer to Figure 2.2.Which diagram best represents the effect of lower fertilizer prices on the market for corn?

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In diagram C, the decrease in fertilizer prices will shift the supply curve of corn to the right, resulting in a lower equilibrium price (P1 to P2) and an increase in equilibrium quantity (Q1 to Q2). This is because with lower fertilizer prices, farmers are incentivized to produce more corn, which increases the supply in the market. Diagram A and D do not show any effect of fertilizer prices on the corn market, and diagram B incorrectly shows that a decrease in fertilizer prices will shift the demand curve instead of the supply curve.