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Paper 1 · supply shifts

The diagram represents the market for maize. What might shift S1S_1 to S2S_2?

supply shifts - ZIMSEC Economics past paper diagram
Aa rise in the wages of maize workers
Ba decrease in the productivity of maize workers
Can increased government subsidy to maize farm workers
Dstarting up new cotton farms
Explanation: S2 is to the right of S1 (an increase in supply). An increased government subsidy to maize farm workers reduces production costs, causing supply to increase (shift right).

ZIMSEC Economics Paper 1, June 2009, Q7

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