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 impact of the ethanol program on the long-run equilibrium price level for land suitable for corn cultivation?
A) The price level will settle between $6 and $9.
B) The price level will settle at $6.
C) The price level will settle at $9.
D) The price level will be above $9.
Correct Answer:
Verified
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