Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The supply of soybeans will decrease as farmers switch to corn.
B
The supply of soybeans will increase as farmers allocate more resources.
C
The supply of soybeans will remain unchanged regardless of corn prices.
D
The supply of soybeans will decrease because demand for corn increases.
Understanding the Answer
Let's break down why this is correct
Answer
When the price of corn rises significantly, farmers may choose to grow more corn instead of soybeans because they can earn more money from selling corn. This shift in focus can lead to a decrease in the supply of soybeans, as fewer farmers will dedicate land and resources to soybean production. For example, if a farmer usually plants both corn and soybeans but sees that corn prices have doubled, they might decide to plant more corn and less soybeans to maximize their profits. As a result, the overall amount of soybeans available in the market could decrease, leading to higher prices for soybeans. This situation shows how changes in the price of one crop can directly affect the supply of another crop.
Detailed Explanation
When corn prices go up, farmers want to grow more corn. Other options are incorrect because This answer suggests farmers will stop growing soybeans completely; This choice thinks that corn prices don't matter for soybeans.
Key Concepts
Production Possibilities
Substitutes in Production
Market Behavior
Topic
Production Possibilities and Price Effects
Difficulty
easy level question
Cognitive Level
understand
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