Paper 2 · supply shifts
The diagram represents the market for maize. What might shift to ?
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 left of S1 (less supply). To shift supply rightward (from S2 to S1) we need a decrease in costs of production. An increased government subsidy to maize farm workers reduces costs and increases supply.
ZIMSEC Economics Paper 2, June 2009, Q7
