(figure: four supply curves) stevia is a natural sweetener used as a substitute for sugar. which of these…
(figure: four supply curves) stevia is a natural sweetener used as a substitute for sugar. which of these graphs shows the effect on the supply of bakery desserts made with stevia when the price of stevia rises?\na\nprice\nold\nsupply\nnew\nsupply\nquantity\nb\nprice\nold price\nsupply\na\nnew price\nb\nnew\nold quantity\nquantity quantity\nc\nprice\nnew\nsupply\nold\nsupply\nquantity\nd\nprice\nnew price\nsupply\nb\nold price\na\nold\nnew quantity\nquantity quantity\ngraph a\ngraph b\ngraph c\ngraph d
Answer
Brief Explanations:
When the price of stevia (an input for bakery desserts) rises, the cost of production for bakery desserts made with stevia increases. Producers are less willing to supply the same quantity at each price level, so the supply curve shifts to the left. Graph C shows a left - ward shift of the supply curve from the old supply to the new supply.
Answer:
C. Graph C