Question
Last year the price of corn was $3 a bushel and the quantity of corn demanded...
Last year the price of corn was $3 a bushel and the
quantity of corn demanded was 10 million bushels. This year the
price of corn was $4.00 a bushel and the quantity demanded was 12
million bushels. Is this evidence that the law of demand does not
apply to corn?
A) Yes, because there is a direct relationship between the price of
corn and the quantity supplied
B) Yes, because there is an inverse relationship between the price
of corn and the quantity demanded
C) No, because the other-things-equal assumption was violated over
the two year period
D) No, because the evidence indicates that there is a shortage of
corn.
Homework Answers
Answer #1
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