Asked by Great Amazing on May 05, 2024
Verified
The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?
A) a bountiful harvest
B) increasing production of corn-based ethanol
C) decreasing household incomes,with corn being a normal good
D) a decrease in the price of wheat,a substitute in consumption
Equilibrium Price
The price at which the quantity of goods suppliers are willing to produce equals the quantity of goods consumers are willing to buy.
Corn-based Ethanol
Ethanol produced from corn as a biomass through a fermentation process, primarily used as a biofuel additive for gasoline.
Household Incomes
The total amount of money earned by every member of a household, including wages, salaries, benefits, and other sources of income.
- Determine the impact of varying economic situations, including alterations in income and costs of production, on the balance within the market.
- Investigate the consequences of external variables, like dietary trends and technological improvements, on the demand or supply curve.
Verified Answer
Learning Objectives
- Determine the impact of varying economic situations, including alterations in income and costs of production, on the balance within the market.
- Investigate the consequences of external variables, like dietary trends and technological improvements, on the demand or supply curve.
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