Answered

A disease infects and destroys a large amount of the nation's supply of corn.

What is likely to happen to the price of corn?


AThe price will change very quickly.
BThe price will go down.
CThe price will go up.
DThe price will remain the same.

Verified Answer :

Final answer:

A disease that destroys a large portion of the corn supply will likely lead to an increase in corn prices due to decreased availability. With demand remaining constant, the limited supply causes prices to rise. This is a classic example of supply and demand dynamics in economics.


Explanation:

The Impact of Disease on Corn Prices

When a disease infects and destroys a large portion of a nation's corn supply, the overall quantity of corn available in the market decreases significantly. According to the basic principles of supply and demand, when the supply of a product falls while the demand remains constant, the price is likely to increase.

In the case of corn:

  1. The demand for corn, which is used for food, animal feed, and biofuels, will continue.
  2. With less corn available due to the disease, consumers and producers will be competing for the limited supply.
  3. As a result, sellers can raise prices to match the higher demand and lower supply.

Essentially, when there is a significant reduction in supply, such as through disease or other factors, the price of that good typically moves upwards, reflecting its scarcity.


Learn more about Corn Prices here:

https://brainly.com/question/36200272


Related Questions