Ceteris paribus,if the subsidies given to corn syrup producers decrease,then we can expect
A)A decrease in the demand for corn syrup.
B)A decrease in the supply of corn syrup.
C)An increase in the demand for corn syrup.
D)An increase in the supply of corn syrup.

Question

Quizplus · Accepted Answer

Subsidies are a form of government support for producers that reduces their production costs, allowing them to supply more of a product at a lower price. Therefore, if subsidies to corn syrup producers decrease, their supply of corn syrup will also decrease. This is because their production costs have increased and they will not be able to supply the same amount of corn syrup at the same price. Thus, option B is the correct answer.

Ceteris Paribus,if the Subsidies Given to Corn Syrup Producers Decrease,then