What happens in the market for corn if the midwest experiences severe flooding and much of the crops are destroyed? Question 29 options: A) The equilibrium price will increase and the equilibrium quantity will decrease B) The equilibrium price will decrease and the equilibrium quantity will increase C) Both the equilibrium price and the equilibrium quantity increase D) Both the equilibrium price and the equilibrium quantity decrease
What happens in the market for corn if the midwest experiences severe flooding and much of the crops are destroyed? Question 29 options: A) The equilibrium price will increase and the equilibrium quantity will decrease B) The equilibrium price will decrease and the equilibrium quantity will increase C) Both the equilibrium price and the equilibrium quantity increase D) Both the equilibrium price and the equilibrium quantity decrease
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What happens in the market for corn if the midwest experiences severe flooding and much of the crops are destroyed?
Question 29 options:
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Expert Solution
Step 1
Because of flooding,supply of corn will decrease.Therefore equilibrium price will increase and equilibrium quantity will decrease.
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