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A severe drought damages the wheat, corn, and soybean crops on a major agricultural plain. What does this natural condition do to the supply curve for those crops?
AShifts the supply curve to the right
BProduces a movement along the supply curve
CShifts the supply curve to the left
DHas no effect on the supply curve
Answer & Solution
Correct answer: C. Shifts the supply curve to the left
1. Weather is a natural condition that affects supply separately from the good's own price.
2. A drought lowers the quantity of crops that can be supplied at every price level.
3. A curve showing a lower quantity supplied at every price has shifted to the left.
4. Option B is wrong because nothing about the crop's price changed to cause a movement along the curve.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.2 | Shifts in Demand and Supply for Goods and Services_
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