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How Is the Market for Corn (A Substitute for Wheat)affected

Question 186

Multiple Choice
How is the market for corn (a substitute for wheat)affected by a positive technological change in the production of disease-resistant wheat caused the price of wheat to fall, holding everything else constant?
A)The supply of corn would decrease and the equilibrium price of corn would increase.
B)The demand for corn would increase and the equilibrium price of corn would increase.
C)The demand for corn would decrease because consumers could afford to buy less wheat and less corn.
D)The demand for corn would increase and the equilibrium price of corn would decrease.

How is the market for corn (a substitute for wheat) affected by a positive technological change in the production of disease-resistant wheat caused the price of wheat to fall, holding everything else constant?


A) The supply of corn would decrease and the equilibrium price of corn would increase.
B) The demand for corn would increase and the equilibrium price of corn would increase.
C) The demand for corn would decrease because consumers could afford to buy less wheat and less corn.
D) The demand for corn would increase and the equilibrium price of corn would decrease.

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