Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.
a. As a result of the price increase in corn, the of corn would . At the same time, the amount of acreage used in corn production would
b. Which of the following would be the most likely cause of the change in the amount of acreage used in corn production?
A. The higher price signals suppliers that corn is becoming more valuable.
B. Consumers directly inform suppliers of the increased demand for corn.
C. The government mandates that U.S. corn producers increase the acreage they devote to corn production to keep up with demand.
D. Economists publish reports in trade magazines informing farmers of the increased demand for corn.