Final answer:
An increase in the cost of hiring tractors for plowing peanut farms would decrease the supply of peanuts, as higher input costs lead to a decrease in production.
Step-by-step explanation:
An increase in the cost of hiring tractors for plowing peanut farms would most likely decrease the supply of peanuts. This is because the cost of production impacts supply; when the cost of inputs, such as tractor rentals, goes up, the cost of production also increases. Farmers may then supply less since it is more expensive for them to produce peanuts. This is not to be confused with the demand for peanuts, which is affected by consumers' willingness and ability to purchase peanuts at various prices.
Considering the price elasticity of agricultural products — specifically food — which is generally inelastic, changes in supply do not have a proportionate effect on the amount consumers purchase. However, they can affect the market price and farmers' revenues. For instance, a decrease in supply due to higher production costs can lead to higher prices, which could potentially offset the lower quantity supplied.