Relating to the Economics in Practice on page 253: Ethanol subsidies have increased the supply of corn, and ethanol is a fuel produced from corn. As a result, ________ farm land has increased. Further, supply of ________ has decreased.
A) demand for; corn
B) supply of; other grains
C) demand for; other grains
D) supply of; corn

Question

Quizplus · Accepted Answer

The demand for farm land has increased due to the need to grow more corn for ethanol production, which in turn decreases the supply of other grains as land is reallocated to corn production.

Relating to the Economics in Practice on Page 253: Ethanol