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Suppose a Method Was Discovered to Cheaply Convert Corn into a Fuel

Question 196

Multiple Choice

Suppose a method was discovered to cheaply convert corn into a fuel for automobiles that got better gas mileage than gasoline and caused less damage to the internal combustion engine.As a result,we would expect that


A) the equilibrium price of corn would increase and equilibrium quantity would decrease.
B) the equilibrium price and quantity of corn would decrease.
C) the equilibrium price of corn would decrease and equilibrium quantity would increase.
D) the equilibrium price and quantity of corn would increase.

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