Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s).
-Recall the Application.Which of the following statements is true about the implications of getting some North Dakota farmers to switch their crops to switchgrass?

Question

Quizplus · Accepted Answer

The statement that the higher the price, the larger the acreage devoted to switchgrass implies that as the profitability of growing switchgrass increases (through higher prices), more farmers would be incentivized to allocate more land for its cultivation. This is a common economic principle where producers respond to price signals by adjusting supply.

Recall the Application About the Break-Even Price for Growing Switchgrass