According to the law of demand, when will higher corn prices reduce the quantity demanded of corn? a. When the supply of corn is fixed. b. Always. c. When there are no shortages or surpluses of corn. d. When nonprice determinants, like income and the number of buyers, are unchanged.

Question

Damian Delacruz

Business

29 January, 03:17

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn? a. When the supply of corn is fixed. b. Always. c. When there are no shortages or surpluses of corn. d. When nonprice determinants, like income and the number of buyers, are unchanged.

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Answers (1)

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Ernest Mckay · Answer 1

D. When nonprice determinants, like income and the number of buyers, are unchanged.

Explanation:

Initially, in market of supply and demand, it is explained that when their is increase in supply of goods and also services, the prices of these goods and services remains the same but when their are higher prices, it is said to have occurred when non price determinants, like income and the number of buyers, are unchanged.

It is known that when their is an increase in goods and services supply, demand remains the same, prices are also seen to fall to a lower price which pushes for a higher quantity of goods and services.