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Figure: Shifts in Demand and Supply II
-(Figure: Shifts in Demand and Supply II) Look at the figure Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel BEST describes how this will affect the market for peanuts?
A)panel A
B)panel B
C)panel C
D)panel D

Question

Use the following to answer questions :
Figure: Shifts in Demand and Supply II 
-(Figure: Shifts in Demand and Supply II) Look at the figure Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel BEST describes how this will affect the market for peanuts?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

A drought destroying a significant portion of the peanut crop would decrease the supply of peanuts, shifting the supply curve to the left, which is depicted in panel C.

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