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 remain unchanged regardless of corn prices.
C
The supply of soybeans will increase as farmers switch to soybeans from corn.
D
The supply of soybeans will increase due to higher demand for corn.
Understanding the Answer
Let's break down why this is correct
Answer
When the price of corn rises, farmers often see a chance to make more money by growing corn instead of soybeans. This is because if corn is more valuable, it becomes more attractive for farmers to plant it. As a result, some farmers might choose to plant less soybeans and more corn in the next planting season. For example, if a farmer usually grows both crops but notices that corn prices have increased significantly, they might decide to plant more corn to maximize their profits. Consequently, the supply of soybeans could decrease because fewer farmers are dedicating their land and resources to growing them.
Detailed Explanation
When corn prices go up, farmers want to make more money. Other options are incorrect because Some might think that soybean supply won't change; This option suggests farmers will grow more soybeans.
Key Concepts
Substitutes in production
Price effects on resource allocation
Production possibilities curve
Topic
Production Possibilities and Price Effects
Difficulty
easy level question
Cognitive Level
understand
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