A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______.
A) decreases; up and to the left
B) increases; up and to the left
C) decreases; down and to the right
D) increases; down and to the right

Question

Quizplus · Accepted Answer

An increase in the price of soy will make it more profitable for the farmer to grow soy instead of sorghum, leading to a decrease in the opportunity cost of growing sorghum. This will in turn shift the supply curve of sorghum up and to the left, as less sorghum will be supplied at each price point.

A Farmer Can Grow Soy or Sorghum