In the figure given below, D₁ and D₂ represent the demand curves for land before and after the ethanol program respectively.SRS is the short-run supply curve of land.
-Refer to Figure .What will be the shape of the long-run supply curve of land suitable for corn farming?
A) The long-run supply curve of land suitable for corn farming will be perfectly inelastic.
B) The long-run supply curve of land suitable for corn farming will be perfectly elastic.
C) The long-run supply curve of land suitable for corn farming will be less elastic than the short-run supply curve.
D) The long-run supply curve of land suitable for corn farming will be more elastic than the short-run supply curve.
Correct Answer:
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