Holding other factors constant, if bad weather destroys the annual crop for carrots, it causes the supply curve for carrots to

Options:

a. Shift to the left, causing the prices of carrots to rise

b. Shift to the left, causing the prices of carrots to fall

c. Stay the same

d. The supply curve does not shift. Only the demand curve shifts.

a. Shift to the left, causing the prices of carrots to rise

Explanation:

Indeed, going by the law of supply and holding all other factors constant, we would expect the supply curve to shift to the left, which implies that there would be an increase in the price of carrots.

What this means is that because there are now fewer carrots in the market as a result of the effects of the bad weather, there would be scarcity and so sellers would increase prices.

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