Consider the change in market conditions in each of the given scenarios. Use the graphs to illustrate whether the changing market conditions will result in a change in supply or quantity supplied. If the change in market conditions results in a change in supply, shift the supply curve appropriately, but leave the price line unchanged.
If the change in market conditions results in a change in quantity supplied, adjust the price line appropriately, but leave the supply curve unchanged.
a. An increase in the price of corn used in the production of ethanol reduces the amount of corn available for use as livestock feed. b. Speculators in world steel markets push the price of steel up, leading American steel companies to expand production.