Ethanol Is Produced Using Corn

question 215

Multiple Choice

Ethanol is produced using corn. "Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run, what is TRUE if the production of ethanol increases?

• A) The demand for corn will increase.
• B) The supply of ethanol will decrease.
• C) The supply of corn will increase.
• D) The demand for ethanol will increase.

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