Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
The statement that farmers will always decrease corn production to grow more soybeans when corn prices increase is not necessarily true. Farmers make decisions based on several factors, including market demand and potential profits. If the price of corn rises, it might encourage farmers to grow more corn instead, especially if there is still strong demand for it. For example, if corn prices rise due to high demand for ethanol, farmers may choose to grow more corn rather than switch to soybeans, which might not be as profitable at that time. Therefore, while price changes can influence what farmers decide to grow, they do not always lead to a decrease in corn production.
Detailed Explanation
Farmers will not always switch to soybeans. Other options are incorrect because This answer suggests farmers only think about corn prices.
Key Concepts
Production Possibilities Curve
Substitutes in Production
Market Demand
Topic
Production Possibilities and Price Effects
Difficulty
medium level question
Cognitive Level
understand
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