Question content area
Part 1
A severe drought in the midwest of the United States raises the price of corn. For a farmer in Canada who harvested a normal crop because the farm was not affected directly by the drought, the increase in the price of corn
Part 2
A.
increases the farmer's producer surplus.
B.
decreases the farmer's producer surplus.
C.
does not affect the producer surplus because this change is a movement along the farmer's supply curve and not a shift of the farmer's supply curve.
D.
increases producer surplus only if the farmer's supply is completely inelastic.