Corn and Soybeans Are Alternatives That Could Be Grown by Most

question 48

Multiple Choice

Corn and soybeans are alternatives that could be grown by most farmers. If government subsidies for ethanol lead to higher corn prices, this will

• A) increase the supply of corn.
• B) increase the supply of soybeans.
• C) decrease the supply of soybeans.
• D) decrease the supply of corn.
• E) have no effect on the supplies of corn and soybeans.

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Definitions:

Enforce

To compel obedience or compliance through legal or authoritative means; to ensure the fulfillment of a requirement.

Give Consideration

In contract law, the act of offering something of value, required by both parties for a contract to be legally binding.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise even when a legal contract does not exist.

Unilateral Contract

An agreement in which one party makes a promise in exchange for an act performed by another party.