A Drought in the Midwest Over the Summer Decreased the Supply

question 376

Multiple Choice

A drought in the Midwest over the summer decreased the supply of corn and, as a result, brought a sharp increase in the price of corn. 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.

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Definitions:

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The act of feeding a baby with milk directly from a mother's breast, providing essential nutrients and immune support.

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A rubber, plastic, or silicone nipple given to an infant to suck upon, apart from feeding, often used to soothe them.

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A psychological condition resulting from severe trauma, characterized by persistent fear, avoidance of trauma reminders, and distressing memories.