Suppose farmers can use their land to grow either wheat or corn.The law of supply predicts that an increase in the market price of wheat will cause:

Question

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The law of supply states that producers will offer more of a good for sale as its price rises. Therefore, if the price of wheat increases, farmers are likely to allocate more land to wheat production instead of corn to maximize their profits.

Suppose Farmers Can Use Their Land to Grow Either Wheat