The floods of 1993 caused the price of corn to increase. This is an example of
A) inflation.
B) deflation.
C) a sustained inflation.
D) the operations of supply and demand.

Question

Quizplus · Accepted Answer

The increase in price of corn due to the floods of 1993 can be attributed to the operations of supply and demand. The floods damaged a significant amount of corn crops, thereby reducing the supply of corn in the market. As a result, the demand for corn remained constant or increased, leading to an increase in price. This is an example of how the operations of supply and demand can influence the price of a commodity.

The Floods of 1993 Caused the Price of Corn to Increase