Question

Good weather and heavy winter rain increases the supply of agricultural products. This means that at any given price, a higher quantity will be supplied. Conversely, a drought would shift the
supply curve to the left

The point at which quantity demanded equals quantity supplied is called
equilibrium

Answer 1

Answer:

1. Supply curve shifted to the left.

2. It will be referred to as the equilibrium.

Explanation:

1. The reason for the shifting of the supply curve to the left side, is that the sellers will be less inclined for supplying the same amount of quantity at the stated or the given price or the there is an increase or rise on the input prices of the product.

So, the situation of drought, result in less supply of the quantity in the market which in turn also increase the price. This will result in shifting of curve to left side.

2. Equilibrium means that the reaction has reached a point or a situation where the concentrations of the product as well as the reactant are unchanging with the time, as the backward as well as the forward reactions have the same rate.

Therefore, the point or a situation where the quantity supplied as well as the  quantity demanded are equal will be known as the equilibrium point.