Question

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ A) demand curve to the right
B) supply curve to the left
C) supply curve to the right
D) demand curve to the left

Answer 1

Answer:

The correct answer is option C.

Explanation:

A drought adversely affects the production of crops causing the supply of agricultural products to decline. Because of the decline in supply, the supply curve for agricultural products will shift to the left. This implies that at any given price, a quantity lower than earlier will be supplied.  

Good weather, on the other hand, positively affects the production of crops. This causes supply to increase. As a result, the supply curve will shift to the right, implying, an increase in the quantity supplied at each price level.