The figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change? OA. an increase in the number of corn growers OB. an increase in the cost of the fertilizer used to grow the corn OC. a belief among corn farmers that the price of a bushel of corn will be higher next month OD. an increase the price of wheat, a substitute in production for corn O E. an increase in income if corn is a normal good Price (dollars per bushel of corn) * D Quantity (millions of bushels of corn per year)

The figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change? OA. an increase in the number of corn growers OB. an increase in the cost of the fertilizer used to grow the corn OC. a belief among corn farmers that the price of a bushel of corn will be higher next month OD. an increase the price of wheat, a substitute in production for corn O E. an increase in income if corn is a normal good Price (dollars per bushel of corn) * D Quantity (millions of bushels of corn per year)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure illustrates the market for com. If point "a" represents the original equilibrium and point "b" the new equilibrium,
which of the following could have caused the change?
O A. an increase in the number of corn growers
OB. an increase in the cost of the fertilizer used to grow the corn
OC. a belief among corn farmers that the price of a bushel of corn will be higher next month
O D. an increase the price of wheat, a substitute in production for corn
O E. an increase in income if corn is a normal good
Price (dollars per bushel of corn)
b
S₁
D
$₂
Quantity (millions of bushels of corn per year)

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