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In 2008, Increased Gasoline Prices Led to Increased Corn Prices

Question 54

Multiple Choice

In 2008, increased gasoline prices led to increased corn prices, primarily because


A) corn production and gasoline production are both concentrated in the high-cost Midwest.
B) corn oil is a good substitute for gasoline, and ethanol is an essential input to corn production.
C) ethanol is a good substitute for gasoline, and corn is an input to ethanol production.
D) gasoline is a good substitute for corn oil, and corn oil is an input to input to gasoline production.

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