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Corn syrup and maple syrup are substitutes. News of health benefits from maple has increased the demand for maple syrup and decreased the demand for corn syrup. Meanwhile, the government has subsidized corn crops, a key ingredient of corn syrup. As a result, the equilibrium price of corn syrup _______ and the equilibrium quantity ________. a. is unknown; decreases b. is unknown; increases c. increases; is unknown d. decreases; is unknown

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Answer:

d. decreases; is unknown

Step-by-step explanation:

Substitute goods are goods that can be used in place of each other.

The news of the health benefits of maple syrup would reduce the demand for corn syrup.

The government subsidy would increase the supply of corn syrup.

As a result the equilibrium price would fall and the effect on equilibrium quantity would be indeterminate. It would depend on the extent of change of demand and supply.

I hope my answer helps you

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