An increase in the world price of cauliflower in the market for cabbage. (Assume

Question

An increase in the world price of cauliflower in the market for cabbage. (Assume the demand for cabbage does not shift.) An increase in the world price of ice cream in the market for ice cream. How would each of the following affect the Canadian market supply curve for corn? LO8 A new high-yielding strain of corn is discovered. The price of fertilizer falls. The government offers corn farmers a subsidy of $ 1/bushel. Which of the following are true? Why? The price elasticity of supply for Basmati rice (an aromatic strain of rice) is likely to be LO8 Higher in the long run than the short run,

Explanation / Answer

a. This will lead to rightward shift of the supply curve of corn as quantity produced of corn will increase.

B. When the prices of the inputs falls, the cost of production falls and thus firm will be able to produce more and sell more and thus market supply increases.

C. Subsidy will increase the profits of the firm and thus the firm will supply more of corn.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.