Final answer:
A 'shortage of corn' implies the demand for corn exceeds supply at the current price, leading to higher prices. An increase in prices should eventually correct the shortage, moving the market toward a new equilibrium where supply meets demand.
Step-by-step explanation:
When a radio announcer says there is a shortage of corn in the market, it means that the quantity demanded of corn exceeds the quantity supplied at the current price. In economic terms, a shortage occurs when the market price is below the equilibrium price, where supply and demand intersect, causing consumers to demand more of a product than producers are willing to supply at that price. Shortages are often caused by factors such as crop failures, increased demand, or disruptions in supply chains.
As an agricultural economist, one would expect that this shortage will lead to an increase in corn prices in the market. According to the laws of supply and demand, as the price increases, the quantity supplied will tend to rise, and the quantity demanded will tend to fall, eventually leading the market towards a new equilibrium. If the shortage persists, this implies that the price of corn will continue to rise until the market clears, meaning the quantity demanded equals the quantity supplied at the new higher price.