Given the Events Listed Below That Take Place in the Corn

question 250

Short Answer

Given the events listed below that take place in the corn market, decide if demand or quantity demanded changes and determine the direction of change.
a.The economy prospers and incomes rise dramatically.
b.The price of corn falls.
c.The price of pork increases, and corn is a significant input in the pork market.
d.The price of oats, a substitute for corn, falls.
e.The price of corn increases.
f.A new fertilizer comes on the market that leads to tremendous increases in corn productivity.

---

Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Monetarists

Economists who posit that variability in the money supply critically impacts the short-term national economic output and the price level over longer spans.

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.

Economic Behaviorists

Economic Behaviorists study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions, and the consequences these decisions have on market prices, returns, and the allocation of resources.