In 2012 a Severe Drought Raised the Price of Corn

question 391

Multiple Choice

In 2012 a severe drought raised the price of corn. For a farmer in Canada who harvested a normal crop because the farm was not affected directly by the drought, the increase in the price of corn

• A) increases the farmer's producer surplus.
• B) decreases the farmer's producer surplus.
• C) does not affect the producer surplus because this change is a movement along the farmer's supply curve and not a shift of the farmer's supply curve.
• D) increases producer surplus only if the farmer's supply is completely inelastic.

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Definitions:

Machine Cost

The expenses incurred in the operation and maintenance of a machine, including purchase price, installation, repairs, and running expenses.

A-B-C Analysis

A-B-C Analysis is a psychological approach that helps to understand the Antecedents, Behaviors, and Consequences of an action or event, commonly used in behavior modification.

Behavior Modification

A systematic approach to changing behavior through various techniques and strategies, such as reinforcement and punishment.

Safety Gear

Equipment designed to protect individuals from accidents or injuries in various environments.