Last Year the Price of Corn Was $3 a Bushel

question 161

Multiple Choice

Last year the price of corn was $3 a bushel and the quantity of corn demanded was 10 million bushels. This year the price of corn was $4.00 a bushel and the quantity demanded was 12 million
Bushels. Is this evidence that the law of demand does not apply to corn?

• A) Yes, because there is a direct relationship between the price of corn and the quantity supplied.
• B) Yes, because there is an inverse relationship between the price of corn and the quantity demanded.
• C) No, because the other-things-equal assumption was violated over the two-year period.
• D) No, because the evidence indicates that there is a shortage of corn.

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Definitions:

Dynamics

The branch of physics concerned with the study of forces and their effects on motion.

Illustrated

Described or explained with pictures or diagrams.

Reconsolidation

A process by which previously consolidated memories are recalled and then stored again for long-term memory, potentially altering the memory.

Memory

The faculty by which the mind stores and remembers information.