Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect Group of answer choices the supply of ethanol, a corn-based product, to increase. consumer demand for wheat to fall. the supply to increase as farmers plant more corn. the supply to fall as farmers plant more of other crops.

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Karma Krueger

Business

9 May, 15:23

Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect Group of answer choices the supply of ethanol, a corn-based product, to increase. consumer demand for wheat to fall. the supply to increase as farmers plant more corn. the supply to fall as farmers plant more of other crops.

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Curtis Mills · Answer 1

the supply to increase as farmers plant more corn.

Explanation:

If corn prices go up, corn producers will be able to promote higher revenue from selling these products.

For this reason, to take advantage of this high price, farmers will increase their corn production, increasing the planting area and stimulating the production of more ears. As a result, there will be a greater supply of corn to the consumer, because production has increased as a result of the price increase.

In summary, we can say that if the price of corn increases the supply of corn tends to increase as farmers plant more corn.