Suppose consumer preference for organic corn starts to rise while the cost of growing organic corn continues to rise.In the market for organic corn,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.
A)increasing; increasing or decreasing
B)decreasing; increasing or decreasing
C)increasing or decreasing; increasing
D)increasing or decreasing; decreasing

Question

Quizplus · Accepted Answer

The increase in consumer preference for organic corn would shift the demand curve to the right, leading to a higher equilibrium price. The rise in the cost of growing organic corn would shift the supply curve to the left, also contributing to a higher equilibrium price. The effect on equilibrium quantity is uncertain without knowing the relative magnitudes of the shifts in supply and demand; hence, the equilibrium quantity could increase or decrease.

Suppose Consumer Preference for Organic Corn Starts to Rise While