The demand for corn increases. As a result, the price of corn will ________, and the less elastic the supply of corn, the ________ will be the effect on the price.
A) fall; smaller
B) fall; greater
C) rise; smaller
D) rise; greater

Question

Quizplus · Accepted Answer

When demand increases, the price typically rises. If the supply is less elastic, it cannot respond quickly to the increase in demand, leading to a greater increase in price.

The Demand for Corn Increases