Suppose that the price of fertilizer,an input in the production of corn,rises.We would predict that the equilibrium quantity of corn will ________ and the equilibrium price of corn will ________.

Question

Quizplus · Accepted Answer

If the price of an input in the production of corn rises, the cost of producing corn increases, which shifts the supply curve to the left. As a result, the equilibrium quantity of corn decreases and the equilibrium price of corn increases. This is illustrated by a movement from point A to point B on the graph where the supply curve shifts to the left and the equilibrium point moves up and left. Choice C is the only option that reflects this prediction.

Suppose That the Price of Fertilizer,an Input in the Production