The Drought in the Midwest Over the Summer Has Decreased

question 390

Multiple Choice

The drought in the Midwest over the summer has decreased the supply of corn and, as a result, brought a sharp increase in the price of corn. (Source: The Economist, August 4, 2012) The increase in the price of corn

• A) always increases consumer surplus.
• B) always decreases consumer surplus.
• C) does not affect consumer surplus because this change reflects only a movement along the demand curve.
• D) increases consumer surplus if demand is elastic and decreases consumer surplus if demand is inelastic.

---

Definitions:

Group Norm

Shared standards, rules, or expectations that influence behavior within a group of people.

Object of Judgement

The entity or individual that is being evaluated or assessed in a particular situation.

Autokinetic Experiment

A psychological experiment where a stationary point of light in a dark room appears to move because of small eye movements, illustrating the effect of suggestion or social influence on beliefs.

Frame of Reference

A system of values or beliefs against which judgments are made or a context through which a situation can be viewed.