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economics

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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 -

    I disagree.

    Your problem implies that this land is much more valuable being used for soybeans than for corn.

  • economics -

    so its a, it has no effect?

  • economics -

    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 -

    oh okay that makes it a lot clearer to me and that means it would decrease the demand for corn

  • economics -

    With much higher corn prices, the demand would decrease.

    Wouldn't this scenario raise the cost of growing corn?

  • economics -

    i don't think it would

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