Relating to the Economics in Practice on page 252: Which of the following would be an expected result of increased government subsidies for ethanol, a fuel produced from corn?
A) an increase in the price of gasoline made in part from ethanol
B) an increase in the price of land used to farm corn
C) decreases in the price of land used to farm grains other than corn
D) a decrease in the production of corn relative to other grains

Question

Quizplus · Accepted Answer

Increased government subsidies for ethanol would likely increase the demand for corn, leading to higher prices for land used to farm corn as farmers seek to expand production to meet the increased demand.

Relating to the Economics in Practice on Page 252: Which