A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn ________ and the quantity of corn ________.

Question

Quizplus · Accepted Answer

When the cost of producing corn is lowered, the supply curve for corn shifts to the right (increases) since it is cheaper for producers to produce corn. This results in a decrease in price (falls) and an increase in quantity (increases) of corn.

A Technological Improvement Lowers the Cost of Producing Corn