Which factor would shift the supply curve for ethanol in the United States to the right?

A. An American ban on ethanol from all producers

B. An excise tax placed by government on ethanol use

C. The removal of subsidies from the government to all American ethanol producers

D. A trade agreement with Brazil opening U. S. markets to imported ethanol

Question

Social Studies

Keshawn Wise

15 April, 20:02

Which factor would shift the supply curve for ethanol in the United States to the right?

A. An American ban on ethanol from all producers

B. An excise tax placed by government on ethanol use

C. The removal of subsidies from the government to all American ethanol producers

D. A trade agreement with Brazil opening U. S. markets to imported ethanol

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Answers (1)

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Davies · Answer 1

A trade agreement with Brazil opening U. S. markets to imported ethanol would shift the supply curve for ethanol in the United States to the right.

Option: D

Explanation:

In market economy demand and supply of a particular commodity possess a very important role. By placing price in 'X' axis and demand and supply in 'Y' axis we can measure the demand and supply rate. Except price import and export of product also influence the demand and supply of product.

Like a trade agreement of with any country for opening the market towards it for better importing will influence the present supply condition of the product. If Brazil export ethanol to U. S market supply curve of ethanol will slightly shift rightwards to keep balance in market economy.