Use the Following to Answer Questions

question 170

Multiple Choice

Use the following to answer questions:
Figure: Demand, Supply Shifts
-(Figure: Demand, Supply Shifts) In the figure, the initial demand curve is D₁ and the initial supply curve is S₁. Suppose this depicts the market for corn. How does the market change when flooding in Iowa destroys a significant amount of the corn crop.

• A) S₁ will shift to S₂.
• B) D₁ will shift to D₂.
• C) S₁ will shift to S₃.
• D) There will be no change in supply or demand in the market for corn.

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