Use the following to answer questions: Figure: Demand, Supply Shifts -(Figure: Demand, Supply Shifts) In the figure, the initial demand curve is D₁ and the initial supply curve is S₁. Suppose this depicts the market for corn. How does the market change when flooding in Iowa destroys a significant amount of the corn crop. A) S₁ will shift to S₂. B) D₁ will shift to D₂. C) S₁ will shift to S₃. D) There will be no change in supply or demand in the market for corn.

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Flooding in Iowa would reduce the supply of corn, causing the supply curve to shift left from S₁ to S₂.

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