Consider the Market for Corn

question 201

Multiple Choice

Consider the market for corn.What happens if there is an increased demand for corn tortillas and,at the same time,a new corn seed becomes available that dramatically increases the yield per acre?

• A)Price and quantity decrease.
• B)The change in price is indeterminate;quantity decreases.
• C)The change in price is indeterminate;quantity increases.
• D)Price increases;the change in quantity is indeterminate.

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Definitions:

Netherlands

The Netherlands is a country in Northwestern Europe known for its flat landscape, extensive canal systems, cycling routes, and tulip fields.

Tulips

A type of flowering plant known for its bright colors and bulbous shape, often associated with the Netherlands.

Ricardian Model

An economic theory that focuses on comparative advantage, suggesting that countries should specialize in producing goods they can produce most efficiently.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.