If Ethanol Production Is Expected to Increase the Price of Corn,U.S.farmers

question 49

Multiple Choice

If ethanol production is expected to increase the price of corn,U.S.farmers will likely

• A) shift the supply of corn to the left.
• B) shift the supply of corn to the right.
• C) reduce the production of corn by sliding down the corn supply curve, all else equal.
• D) increase the production of corn by sliding up the corn supply curve, all else equal.

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Definitions:

Control of Business

The authority to direct the significant policies and decisions of a company or entity, often through ownership of a majority of voting shares.

Profits Equally

A principle where all parties involved in a business venture or agreement share the generated profits equally.

Joint Ventures

A business arrangement between two or more parties who agree to combine resources for the purpose of accomplishing a specific task or project.

Share Profits

The distribution of a portion of a company's earnings to its shareholders as determined by the board of directors.