Reference: Ref 3-4 (Figure: Supply Shifts) in the Figure, the Initial

Multiple Choice

Reference: Ref 3-4 (Figure: Supply Shifts) In the figure, the initial supply curve is S1. If producers form expectations that the price will be lower in the near future, S1 will:

A) shift to S2.
B) shift to S3.
C) not shift.
D) not shift, although the price of the good will decrease today.