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Business, 17.04.2020 18:58 idk12345677
Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur
a. The market supply of corn will decrease.
b. The quantity supplied of soybeans (a substitute for corn) will decrease.
c. The profits of corn farmers who quickly adopt the new technology will increase.
d. The demand for corn will increase.
e. The price of soybeans (a substitute for corn) will decrease.
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