A farming cooperative allocates a fixed, finite acreage of fertile land to the cultivation of either malting barley or milling wheat. These two crops are in competitive supply. A sudden surge in global demand for malting barley causes its market price to rise significantly.
Which of the following correctly describes the resulting adjustment in the market for milling wheat?
A leftward shift of the supply curve for milling wheat, resulting in a higher equilibrium price and lower equilibrium quantity.
A rightward shift of the supply curve for milling wheat, resulting in a lower equilibrium price and higher equilibrium quantity.
A leftward shift of the demand curve for milling wheat, resulting in a lower equilibrium price and lower equilibrium quantity.
A rightward shift of the demand curve for milling wheat, resulting in a higher equilibrium price and higher equilibrium quantity.
