Suppose a method was discovered to cheaply convert corn into a fuel for automobiles that got better gas mileage than gasoline and caused less damage to the internal combustion engine.As a result,we would expect that

A) the equilibrium price of corn would increase and equilibrium quantity would decrease.
B) the equilibrium price and quantity of corn would decrease.
C) the equilibrium price of corn would decrease and equilibrium quantity would increase.
D) the equilibrium price and quantity of corn would increase.

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Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :  The discovery of a method to cheaply convert corn into a superior automobile fuel would increase the demand for corn, leading to both higher prices and quantities as suppliers respond to the increased demand.

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