A) the demand for c o r n will necessarily increase. B) the equilibrium quantity
ID: 1101043 • Letter: A
Question
A)
the demand for c o r n will necessarily increase.
B)
the equilibrium quantity of c o r n will increase.
C)
the amount of c o r n that will be available at various prices has decreased.
D)
the price of c o r n will go down.
From a Nebraska agricultural report in 2011: Extended high heat disrupts c o r n pollination leading to yield reduction If the supply of c o r n has decreased, then:
A)
the demand for c o r n will necessarily increase.
B)
the equilibrium quantity of c o r n will increase.
C)
the amount of c o r n that will be available at various prices has decreased.
D)
the price of c o r n will go down.
Explanation / Answer
Supply has decreased. Hence,
the amount of c o r n that will be available at various prices has decreased.
if supply decreases, demand my decrease too (owing to rise in price) and shift to new equilibrium (which is a decreased qty)..Hence A and B are not true and as the price of corn will go up (lower supply => more price) => d is eliminated too
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