Corn and soybeans are alternatives that could be grown by most farmers. If government subsidies for ethanol lead to higher corn prices, this will
a. increase the supply of corn.
b. increase the supply of soybeans.
c. decrease the supply of soybeans.
d. decrease the supply of corn.
e. have no effect on the supplies of corn and soybeans.
b. increase the supply of soybeans.
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In the market for health care, the price that consumers with health insurance pay is __________ the full cost of providing the health care service.
a. higher than b. lower than c. equal to
If government cuts taxes ________
A) national saving goes up B) the equilibrium interest rate would decrease C) discretionary income goes up D) all of the above E) none of the above
In the market for labor, the price of labor is the:
A. number of hours employed per year. B. real wage. C. same as price of the product produced by the labor. D. marginal product of labor.
If country A is importing good x from country B where x is produced along a perfectly inelastic supply curve, then country B will suffer the entire deadweight loss from any tariff imposed on imports to country A.
Answer the following statement true (T) or false (F)