According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Question

Quizplus · Accepted Answer

The law of demand states that there is an inverse relationship between price and quantity demanded, all else being equal. When nonprice determinants, such as income and number of buyers, are unchanged, an increase in price will cause a decrease in quantity demanded. Therefore, if corn prices increase and there are no changes in nonprice determinants or shortages/surpluses, the quantity demanded of corn will decrease. However, if there are changes in nonprice determinants, such as an increase in income, the quantity demanded may not decrease as much or at all. Additionally, if there are shortages or surpluses, the quantity demanded may be affected by factors other than price.

According to the Law of Demand, When Will Higher Corn