Which describes the effect of a larger crop on the market supply curve?

Which describes the effect of a larger crop on the market supply curve?

• A. Shifts to the right, resulting in a lower price
• B. Shifts to the left, resulting in a higher price
• C. No shift, price remains the same
• D. Moves along the existing curve without shifting

Answer: (A)

Increasing crop yields means producers are willing to supply more at every price. This adds a rightward shift to the market supply curve. With demand unchanged, the new intersection of supply and demand occurs at a lower price and a higher quantity. It’s not just a movement along the curve (which would happen if price changed but supply conditions stayed the same); the entire curve shifts because the overall ability to supply has increased.

Increasing crop yields means producers are willing to supply more at every price. This adds a rightward shift to the market supply curve. With demand unchanged, the new intersection of supply and demand occurs at a lower price and a higher quantity. It’s not just a movement along the curve (which would happen if price changed but supply conditions stayed the same); the entire curve shifts because the overall ability to supply has increased.