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Suppose That Corn Prices Rise Significantly

Question 91

Multiple Choice

Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect


A) the supply of ethanol, a corn-based product, to increase.
B) consumer demand for wheat to fall.
C) the supply to increase as farmers plant more corn.
D) the supply to fall as farmers plant more of other crops.

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