A technological improvement lowers the cost of producing corn. As a result, the price of a kilogram of corn ________ and the quantity of corn ________.

Question

Quizplus · Accepted Answer

If the cost of producing corn lowers, the supply of corn in the market increases, leading to a shift in the supply curve to the right. This results in a lower equilibrium price (fall in price) and a higher equilibrium quantity (increase in quantity). Therefore, the price of a kilogram of corn falls, and the quantity of corn increases.

A Technological Improvement Lowers the Cost of Producing Corn