Asked by Nourhan Ashraf on May 19, 2024
Verified
In the market for wheat,if the price of ethanol (which is made from corn,a substitute in the production process) increased dramatically,the _____ wheat would _____.
A) supply of;increase
B) supply of;decrease
C) demand for;increase
D) demand for;decrease
Price of Ethanol
The cost per unit of ethanol, an alcohol used as a fuel additive and in industrial processes.
Substitute in Production
A good or service that can be used in place of another in the production process, offering flexibility to producers in their inputs.
Demand for
The volume of a good or service that individuals are prepared and financially capable of buying across a range of prices throughout a certain period.
- Acquire knowledge about the elements that dictate supply in the market.
- Distinguish the elements that bring about a rise or fall in the delivery of a commodity.
Verified Answer
AD
Ariah DeleonMay 22, 2024
Final Answer :
B
Explanation :
If the price of ethanol (a substitute in the production process) made from corn increases dramatically, wheat farmers may switch to producing corn instead of wheat, resulting in a decrease in the supply of wheat.
Learning Objectives
- Acquire knowledge about the elements that dictate supply in the market.
- Distinguish the elements that bring about a rise or fall in the delivery of a commodity.