Refer to the Graph of the Supply and Demand for Agricultural

Multiple Choice

Refer to the graph of the supply and demand for agricultural products. The supply and demand for agricultural products are in initial equilibrium at point 1. Technological progress in agriculture will

A) shift D₁ to D₂ and cause farm incomes to fall.
B) shift S₁ to S₂ and cause farm incomes to fall.
C) change equilibrium from point 1 to point 2 and cause farm incomes to rise.
D) change equilibrium from point 1 to point 6 and cause farm incomes to fall.