In 2012, a Severe Drought Led to an Increase in the Price

question 111

Multiple Choice

In 2012, a severe drought led to an increase in the price of corn. Farmer Lyle was not affected by the drought. Comparing 2012 to the previous year in which there was no drought, Farmer Lyle's

• A)consumer surplus increased.
• B)producer surplus increased.
• C)producer surplus increased and his consumer surplus increased.
• D)consumer surplus decreased and his producer surplus increased.
• E)supply of corn became perfectly elastic.

---

Definitions:

Large Factory

A significantly sized manufacturing facility where goods are produced at larger scales, often involving complex machinery and numerous workers.

Production Inputs

Resources such as labor, materials, and capital that are used in the production process of goods and services.

Binding Precedent

Legal cases that establish a rule or principle of law that must be followed by lower courts in the same jurisdiction in future cases of similar nature.

Legal Issues

Matters or disputes that involve laws, legal principles, or proceedings.