Posted by Carrie on Monday, October 11, 2010 at 9:28pm.
if land suitable for growing corn is also suitable for growing soybeans, the discovery that soybean oil prevents cancer will
A.have no effect on the cost of growing corn
B.reduce the cost of growing corn
C.raise the cost of growing corn
D.decrease the demand for corn
is the answer B
economics - Ms. Sue, Monday, October 11, 2010 at 9:33pm
Your problem implies that this land is much more valuable being used for soybeans than for corn.
economics - Brittany, Monday, October 11, 2010 at 9:34pm
so its a, it has no effect?
economics - Ms. Sue, Monday, October 11, 2010 at 9:42pm
Suppose a farmer leases 120 acres for growing corn. The owner of the land finds that he could get 10 times the amount of rent by leasing the land to a company to grow soybeans. He's going to charge the corn-growing farmer much more than before.
economics - Brittany, Monday, October 11, 2010 at 9:47pm
oh okay that makes it a lot clearer to me and that means it would decrease the demand for corn
economics - Ms. Sue, Monday, October 11, 2010 at 9:55pm
With much higher corn prices, the demand would decrease.
Wouldn't this scenario raise the cost of growing corn?
economics - Brittany, Monday, October 11, 2010 at 10:02pm
i don't think it would
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