When the government pushes for expanded use of corn, such as requiring ethanol from corn to be used as an additive to gasoline, the impact in the market is that the supply of corn decreases.

Question

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When the government pushes for expanded use of corn for ethanol, demand for corn increases, which can lead to an increase in corn production. The supply of corn itself does not decrease; rather, the allocation of corn for different uses, such as food versus fuel, may change.

When the Government Pushes for Expanded Use of Corn, Such