According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
a. Always.
b. When the supply of corn is fixed.
c. When nonprice determinants, like income and the number of buyers, are unchanged.
d. When there are no shortages or surpluses of corn.
c
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The real business cycle model best explains the procyclicality of the nominal money supply by
A) an unpredictable Federal Reserve. B) exogenous money. C) endogenous money. D) uncorrelated money.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 Suppose Earth Movers & Shakers needs to fill an order for 100 tons of ore in a single day. If it has no other orders to fill that day, and it's not possible to transfer miners from one mine to another, it should:
A. take it all from Mother Lode. B. take 30 tons from Scraping Bottom and 70 tons from Mother Lode. C. take 75 tons from Middle Drift and 25 tons from Scraping Bottom. D. take 75 tons from Middle Drift and 25 tons from Mother Lode.