A change in the price of corn caused by _____ is an example of a long-run financial risk.
A) A strong tornado season which ruined a major percentage of the crop.
B) A shortage due to a severe drought.
C) An increased supply due to an abundant crop.
D) An increased supply due to technological improvements in the production of the grain.
E) A sudden decrease in demand due to a low market price for other grains.

Question

Quizplus · Accepted Answer

Technological improvements in the production of grain represent a long-run change because they permanently alter the production capacity and efficiency, leading to sustained changes in supply and potentially the price of corn. Other options are more short-term or cyclical in nature.

A Change in the Price of Corn Caused by _____