The stalks left over from the harvesting of corn are used to produce ethanol. The demand for ethanol has increased. What happens to the price and quantity of ethanol if the price of corn also decreases but the shift in supply is not as large as the shift in demand?
A) Price decreases, and quantity increases.
B) Price increases, and quantity increases.
C) Price increases, and quantity decreases.
D) Price decreases, and quantity decreases.
Correct Answer:
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