An Increase in the Demand for Corn Is More Than

question 27

Multiple Choice

An increase in the demand for corn is more than offset by an increase in its supply. As a result the equilibrium price will:

• A) Increase and the equilibrium quantity will decrease
• B) Increase and the equilibrium quantity will increase
• C) Decrease and the equilibrium quantity will decrease
• D) Decrease and the equilibrium quantity will increase

---

Definitions:

Linear Function

A mathematical function that produces a graph of a straight line and is defined by an equation of the first degree.

Polynomial Function

A mathematical expression consisting of variables, coefficients, and non-negative integer exponents, summed together.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Revenue Models

Financial frameworks that outline how a business or project generates earnings through its operations and sales.