Suppose that farmers can use their land to grow and sell soybeans and cotton. Cotton prices have risen. Farmers respond by producing _____ soybeans and _____ cotton.
A) more; less
B) less; more
C) more; more
D) less; less

Question

Quizplus · Accepted Answer

When cotton prices rise, farmers are incentivized to allocate more land to grow cotton because it becomes more profitable, leading to less land available for soybeans, hence producing less soybeans and more cotton.

Suppose That Farmers Can Use Their Land to Grow and Sell