In a competitive agricultural market, if the demand for corn increases due to higher ethanol production, it is guaranteed that the equilibrium price will rise while the quantity supplied will remain unchanged in the short run.

In a competitive agricultural market, when the demand for corn increases because of higher ethanol production, more people want to buy corn. This higher demand usually leads to an increase in the price of corn because sellers can charge more when more buyers are interested. In the short run, the quantity of corn that farmers can supply might not change immediately because it takes time to grow more crops or adjust production. For example, if a farmer has a fixed amount of corn ready to sell, they can’t instantly grow more just because prices have gone up. Therefore, while the price rises due to increased demand, the quantity available for sale may stay the same in the short term.