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If the midwest experiences a severe drought that damages the corn crops, we should expect the:_________.

A) Supply of corn will increase and the price of corn will fall
B) Supply of corn will decrease and the price of corn will rise
C) Demand curve for corn will decrease and the price of corn will fall
D) Demand curve for corn will increase and the price of corn will rise

2 Answers

3 votes

Answer:

Its B

Step-by-step explanation:

4 votes

Answer:

B) The Supply of corn will decrease and the price of corn will rise.

Step-by-step explanation:

Option B is correct because the drought has damaged the corn crops. Therefore, this will affect the supply of corn in the market. Moreover, the damage of corn crops will shift the supply curve leftwards and this shift in the supply curve will push the prices upwards. Thus, the damage of corn crops will increase the prices due to a decrease in its supply.

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