Suppose that an expected increase in ethanol demand increases the intercept of the demand curve in the previous question(question 57)by $1.00. If corn production stays at 12 billion bushels, the price of corn will be

A macroeconomy

What will be an ideal response?

An industry analyst observes that in response to a small increase in price, a competitive firm's output sometimes rises a little and sometimes a lot. The best explanation for this finding is that

A) the firm's marginal cost curve is random. B) the firm's marginal cost curve has a very small positive slope. C) the firm's marginal cost has a very large positive slope. D) the firm's marginal cost curve is horizontal for some ranges of output and rises in steps. E) the firm's marginal cost curve is downward sloping.