Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S₁. If producers form expectations that the price will be lower in the near future, S₁will: A) shift to S₂ now. B) shift to S₃ now. C) not shift now. D) only shift to S₃ in the future.

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If producers expect the price to be lower in the future, they will try to sell more now to make the most profit. This will result in an increase in supply, shifting the supply curve to the right. Therefore, the new supply curve will be S₃.

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