Answered: Of the following, which situation would…

Of the following, which situation would cause the shift of the supply curve from S1 to S2? D P1 P2 Q1Q2 Quantity A. Drought reduces output by 25% B. New fertilizers increase crop yields Price

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 1P

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Question

100%

Of the following, which situation would
cause the shift of the supply curve from S1 to
S2?
S1
P1
P2
Q1 Q2
Quantity
A. Drought reduces output by 25%
B. New fertilizers increase crop yields
C. The government reduces subsidies
to wheat farmers
D. Firms exit the wheat industry
Price

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A shift in supply curve may cause due to various such as change in number of firms, raw material, input resources, and so on.

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