Farmers selling some of their soybeans in storage because they anticipate a lower price of soybeans in the near future would cause a

Multiple Choice

A. movement down along the current supply curve of soybeans.

B. movement up along the current supply curve of soybeans.

C. leftward shift in the current supply of soybeans.

D. rightward shift in the current supply of soybeans.

Question

Business

Rolando Bolton

12 January, 11:19

Farmers selling some of their soybeans in storage because they anticipate a lower price of soybeans in the near future would cause a

Multiple Choice

A. movement down along the current supply curve of soybeans.

B. movement up along the current supply curve of soybeans.

C. leftward shift in the current supply of soybeans.

D. rightward shift in the current supply of soybeans.

+3

Answers (1)

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Morgan · Answer 1

D. rightward shift in the current supply of soybeans.

Explanation:

A shift in the supply curve is caused when factors other than price either increase the supply of a good (a shift to the right), or decrease the supply of the good (a shift to the left).

In this case, a factor other than price, the expectations of farmers (they are expectations because the lower prices have not materialized) has increased the supply of soybeans, causing a rightward shift of the supply curve of that good.