Question

Consider the market for corn, What happens if there is an increased demand for corn tortillas and at the same time a new corn seed becomes available that dramatically increases the per-acre yield?

A. The change in price is indeterminate, quantity increases.
B. Price increases the change in quantity is indeterminate.
C. Price and quantity decrease.
D. The change in price is indeterminate quantity decreases.

Answer 1

A)The change in price is indeterminate; quantity increases.

Step-by-step explanation:

From the question, we are to Consider the market for corn, What happens if there is an increased demand for corn tortillas and at the same time a new corn seed becomes available that dramatically increases the per-acre yield. In this case ,The change in price is indeterminate; quantity increases.

Whenever there is is shift in supply as well as demand, the quantity or the price will definitely become indeterminate. Whenever demand as well as supply goes through the same direction, the price will definitely become indeterminate. The reason behind this is that when supply increases, demand decreases, also when there is increase in demand price increases.