Hydraulic fracturing has unleashed a large supply of natural gas in the U.S., leading to large decreases in natural gas prices and therefore fertilizer (an important input in corn production) costs. What is the impact of the hydraulic fracturing revolution on the market for corn markets?
A. A shift to the right of the derived demand curve and an increase in the price of corn.
B. A shift to the left of the supply curve and an increase in the price of corn.
C. A shift to the left of the derived demand curve and a decrease in the price corn.
D. A shift to the right of the supply curve and a decrease in the price of corn.
Answer: D. A shift to the right of the supply curve and a decrease in the price of corn.
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