Use the following to answer question(s): Demand Shifters and Supply Shifters

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose a wet and sunny year increases the nation's corn crop by 20 percent.Which panel best describes how this will affect the market for corn?

Question

Use the following to answer question(s): Demand Shifters and Supply Shifters
 
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose a wet and sunny year increases the nation's corn crop by 20 percent.Which panel best describes how this will affect the market for corn?

Quizplus · Accepted Answer

A 20% increase in the corn crop would cause a shift in the supply curve to the right, as shown in panel (b). As a result, equilibrium price would decrease and equilibrium quantity would increase.

Use the Following to Answer Question(s): Demand Shifters and Supply