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Suppose Farmers in a Given Market Can Either Grow Soy

Question 48

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Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. All else equal, an increase in the price of corn creates an incentive for farmers to:


A) switch away from growing corn and into growing soy beans.
B) switch away from growing soy beans and into growing corn.
C) grow less corn, but not change their production of soy beans.
D) grow more corn, but not change their production of soy beans.

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