Answer to Question #290564 in Macroeconomics for Bajwa

Question

#2

Suppose you have a supply curve for Corn. Show the impact graphically (draw the

graph) to illustrate the impact of each of the following events on the supply curve.

(hint: should be a movement along the existing supply curve, a shift the supply

curve left, or a shift the supply curve right)

The weather is great for producing corn

b. The weather is terrible for producing corn

The price of corn increases

d.

There is an increase in the technology for producing corn

e

There is an increase in fuel costs for producing corn

Answer 1

a. The weather is great for producing corn - a shift the supply curve right.

b. The weather is terrible for producing corn -  a shift the supply curve left.

c. The price of corn increases - a movement along the existing supply curve upward.

d. There is an increase in the technology for producing corn - a shift the supply curve right.

e. There is an increase in fuel costs for producing corn - a shift the supply curve left.