Question

determinants of supply - resources and technology exercise 1
which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)?
teenagers in potato - farming towns leave to go to college.
potato growers expect the price of potatoes to be lower this year than last year.
the price of fertilizer increases.
a new harvester enables farmers to bring in ripe potatoes twice as fast as they did before.

Explanation:

• For the first option: Teenagers leaving for college reduces the labor force in potato farming, which would likely decrease supply (shift left), not increase.
• For the second option: If growers expect lower prices this year, they might reduce current supply to wait for higher prices later, so this would not shift the supply curve right.
• For the third option: An increase in fertilizer price raises production costs, which would decrease supply (shift left) as it becomes more expensive to produce potatoes.
• For the fourth option: A new harvester that increases the speed of bringing in ripe potatoes is an improvement in technology. Technological advancements typically increase the efficiency of production, allowing farmers to produce more potatoes at each price level, which shifts the supply curve to the right (increase in supply).

Answer:

D. A new harvester enables farmers to bring in ripe potatoes twice as fast as they did before.