Answer :
Final answer:
Government subsidies for potato farming will likely shift the supply curve for potatoes to the right leading to increase in supply. Drought and crop diseases effectively decrease supply moving the curve to the left. Consumer demand impacts the demand curve, not supply.
Explanation:
Among the scenarios given, the one that would likely shift the supply curve for potatoes to the right, indicating an increase in supply, is when farmers receive government subsidies to grow more potatoes. In economic terms, a subsidy is a form of financial aid provided by the government to a economic sector to boost its production. As a result, farmers are incentivized to produce more, increasing the overall supply.
On the other hand, scenarios like drought reducing potato yields or a new potato blight disease will shift the supply curve to the left signifying a decrease in supply as they represent unfavorable conditions for production. Decline in consumer demand impacts the demand curve, not the supply curve.
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