A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:
A) increase both the demand and the supply.
B) decrease both the demand and the supply.
C) increase the demand,but decrease the supply.
D) increase the supply,but decrease the demand.

Question

Quizplus · Accepted Answer

A decrease in the expected price of corn would lead to decreased profitability for corn farmers, which would incentivize them to reduce their output and decrease the supply. In contrast, buyers would be incentivized to purchase more corn at the lower price, which would increase demand. Therefore, the expected effect would be a decrease in demand and an increase in supply, resulting in a surplus in the market.

A Decrease in the Expected Price of Corn Would Likely