Suppose that a new seed technology improves corn yield by 20%. What is the market effect of that new technology?
A. A shift to the left of the supply curve that causes an increase in the price of corn.
B. A shift to the left of the demand curve that causes a decrease in the price of corn.
C. A shift to the right of the demand curve that causes an increase in the price of corn.
D. A shift to the right of the supply curve that causes a decrease in the price of corn.
Ans: D. A shift to the right of the supply curve that causes a decrease in the price of corn.
You might also like to view...
The most important function of middlemen is to
A) act as marketing agents for producers. B) expand the number of jobs in the economy. C) produce valuable information and lower transaction costs. D) protect consumers from exploitation. E) stand between buyers and sellers to control markups.
If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic
a. True b. False Indicate whether the statement is true or false