Tom Searchinger, a Senior Attorney at the Environmental Defense Fund

question 188

Multiple Choice

Tom Searchinger, a senior attorney at the Environmental Defense Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat.How does this affect the market for fertilizer?

• A)The supply of fertilizer increases.
• B)The supply of fertilizer decreases.
• C)The demand for fertilizer increases.
• D)The demand for fertilizer decreases.

---

Definitions:

Units of X

A quantifiable amount of a product or resource, denoted as 'X', used in various contexts to measure output, consumption, or other economic variables.

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.

Indifference Schedule

A representation of combinations of two goods between which a consumer is indifferent because they provide the same level of utility.

Substitution

The act of replacing one item with another, often referring to the economic principle where consumers switch between similar goods in response to changes in price or income.