Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
A) The supply of wheat would increase and the equilibrium price of wheat would decrease.
B) The demand for wheat would decrease and the equilibrium price of wheat would decrease.
C) The demand for wheat would increase because consumers could afford to buy more wheat and corn.
D) The demand for wheat would decrease and the equilibrium price of wheat would increase.
Answer: B
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Which of the following countries will most likely see a future increase in economic growth?
a. one where transportation, sewage and communication systems are strong b. one with high import tariffs placed on foreign-made goods. This will keep out foreign competition c. one where the average mother has 7 children d. one where it is difficult to start a new business. there are many licenses to obtain and fees to pay
Increases in the productivity of labor result partly from
A. increases in the quantity of labor. B. improvements in technology. C. the law of diminishing returns. D. reductions in wage rates.