Answer to Question #291935 in Economics of Enterprise for Rameesha

Question

How would each of the following affect the Pakistan market supply curve for corn?

a. A new and improved crop rotation technique is discovered.

b. The price of fertilizer falls.

c. The government offers new tax breaks to farmers.

Answer 1

a. A new and improved crop rotation technique is discovered - the supply of corn will increase, and the market supply curve will shift rightwards.

b. The price of fertilizer falls - the supply of corn will increase, and the market supply curve will shift rightwards.

c. The government offers new tax breaks to farmers - the supply of corn will increase, and the market supply curve will shift rightwards.