If the cost of fertilizer rises, then the price of corn will:
A) rise.
B) fall.
C) remain unchanged.
D) react unpredictably.

Question

Quizplus · Accepted Answer

The cost of fertilizer is a variable cost of production for corn farmers. If the cost of fertilizer rises, the cost of producing corn will increase. In order to maintain a profit, corn farmers will need to raise the price of corn which will lead to a rise in the price of corn.

If the Cost of Fertilizer Rises, Then the Price of Corn