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Question 116

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Figure: Supply Shifts Use the following to answer questions: Figure: Supply Shifts -(Figure: Supply Shifts) In the figure, the initial supply curve is S<sub>1</sub>. If producers form expectations that the price will be lower in the near future, S<sub>1 </sub>will: A) shift to S<sub>2</sub> now. B) shift to S<sub>3</sub> now. C) not shift now. D) only shift to S<sub>3</sub> in the future.
-(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 now.
B) shift to S3 now.
C) not shift now.
D) only shift to S3 in the future.

Correct Answer:

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