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.

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Definitions:

Stylus

A pen-shaped device used to tap or write on touch-sensitive screens.

Input Device

A hardware device used to enter, or input, data (text, images, and sounds) and instructions (user responses and commands) into a computer.

Pen

A common writing instrument used for applying ink to a surface, typically paper, for writing or drawing.

Binary Language

The fundamental language of computers, consisting of just two numbers, 0 and 1, to represent all types of data and instructions.