43) Suppose we observe a large increase in the price of corn but the quantity of cornsold stays the same. What is the most plausible explanation (or combination ofexplanations) below?a) A drought occurred in corn-growing regions.b) A drought occurred in corn-growing regions and a medical report was issued thatcorn is good for your health.c) A drought occurred in corn-growing regions and a medical report was issued thatcorn is bad for your health.d) A few fertilizer was invented that doubles corn yields.e) A new fertilizer was invented that doubles corn yields and a medical report wasissued that corn is bad for your health.44) Suppose we observe that the price of paper has increased and the quantity ofpaper sold has decreased. What is the most plausible explanation?a) Consumers demand less paper because of increased use of the Internet.b) The price of pens and pencils increased dramatically.c) The number of children in schools decreased dramatically.d) More logging for pulpwood was permitted in National Forests.e) A new law was enacted that forces all paper producers to use expensive non-chlorine bleaching methods.46) "During 2013, the price of personal computers (PCs) fell drastically, but thequantity supplied increased." This statementTHANa) refutes the so-called "law of supply."b) illustrates the fact that the supply curve of PCs is downward-sloping.c) suggests that the supply of PCs increased during 2013.d) implies that PCs are complementary goods.e) suggests that the supply of PCs decreased during 2013.

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43) Suppose we observe a large increase in the price of corn but the quantity of corn sold stays the same. What is the most plausible explanation (or combination of explanations) below? a) A drought occurred in corn-growing regions. b) A drought occurred in corn-growing regions and a medical report was issued that corn is good for your health. c) A drought occurred in corn-growing regions and a medical report was issued that corn is bad for your health. d) A few fertilizer was invented that doubles corn yields. e) A new fertilizer was invented that doubles corn yields and a medical report was issued that corn is bad for your health.

43) Suppose we observe a large increase in the price of corn but the quantity of corn sold stays the same. What is the most plausible explanation (or combination of explanations) below? a) A drought occurred in corn-growing regions. b) A drought occurred in corn-growing regions and a medical report was issued that corn is good for your health. c) A drought occurred in corn-growing regions and a medical report was issued that corn is bad for your health. d) A few fertilizer was invented that doubles corn yields. e) A new fertilizer was invented that doubles corn yields and a medical report was issued that corn is bad for your health.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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