Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
A) increase the supply of corn.
B) increase the supply of soybeans.
C) decrease the supply of soybeans.
D) decrease the supply of corn.
E) have no effect on the supplies of corn and soybeans.

Question

Quizplus · Accepted Answer

An increase in the price of corn makes it more profitable for farmers to grow corn instead of soybeans, leading to a decrease in the supply of soybeans as farmers allocate more resources to growing corn.

Assume That Corn and Soybeans Are Alternatives That Could Be