Use the options below to indicate either the change in Supply or Demand curve for each of the following situations.

Economic prosperity gives more people a greater income:
A. demand increase
B. demand decrease
C. supply increase
D. supply decrease
A new machine allows factories to produce greater amounts:
A. demand increase
B. demand decrease
C. supply increase
D. supply decrease
A severe drought causes massive shortages for food producers:
A. demand increase
B. demand decrease
C. supply increase
D. supply decrease
The FDA announces the harmful health effects of several beauty products:
A. demand increase
B. demand decrease
C. supply increase
D. supply decrease

1 answer

A severe drought causes massive shortages for food producers:
C. supply increase

The FDA announces the harmful health effects of several beauty products:
B. demand decrease