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Figure: Shifts in Demand and Supply III
-(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure 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%.Which panel BEST describes how this will affect the market for corn?

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Use the following to answer questions:
Figure: Shifts in Demand and Supply III 
-(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure 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%.Which panel BEST describes how this will affect the market for corn?

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An increase in the nation's corn crop by 20% will cause a rightward shift in the supply curve, as shown in panel (b). The intersection of the new supply and demand curves will result in a lower price and a larger quantity of corn being produced and consumed.

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