A local corn farmer notices an increase in demand for ethanol, resulting in higher corn prices. Which of the following actions would best illustrate the farmer's understanding of market dynamics, particularly in achieving profit maximization?

The corn farmer can respond to the higher demand for ethanol and rising corn prices by increasing the amount of corn he plants. By doing this, he can take advantage of the higher prices and sell more corn, which will likely lead to greater profits. For example, if the farmer usually plants 100 acres of corn and decides to plant 150 acres instead, he can produce more corn to sell at the higher market price. This action shows that he understands market dynamics, as he is adjusting his production based on current demand and prices. In essence, by planting more corn, he aligns his supply with the increased demand, maximizing his profits effectively.