Consider the market for corn. Say whether each of the following events will cause a shift in the supply curve or a movement along the curve. If it will cause a shift, specify the direction.
a. A drought hits corn-growing regions.
b. The government announces a new subsidy for bio fuels made from corn.
c. A global recession reduces the incomes of consumers in poor countries, who rely on corn as a staple food (assuming corn is a normal good).
d. A new hybrid variety of corn seed causes a 15 percent increase in the yield of corn per acre.
e. An advertising campaign by the beef producers’ association highlights the health benefits of corn-fed beef.