Suppose that the price of corn was above its equilibrium price.Ceteris paribus,we would expect to see

Question

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When the price of corn is above its equilibrium price, it indicates that there is excess supply. In order to sell their product, sellers would have to lower their prices to attract buyers and clear the market. Therefore, we would expect to see sellers lowering their prices in this scenario. Option A is incorrect as sellers would not raise their prices when there is excess supply. Option B is also incorrect as there is no reason for a decrease in supply. Option D is incorrect as a leftward shift of the demand curve would imply a decrease in demand, which is not consistent with the given scenario.

Suppose That the Price of Corn Was Above Its Equilibrium