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
I disagree.
Your problem implies that this land is much more valuable being used for soybeans than for corn.
so its a, it has no effect?
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.
oh okay that makes it a lot clearer to me and that means it would decrease the demand for corn
With much higher corn prices, the demand would decrease.
Wouldn't this scenario raise the cost of growing corn?
i don't think it would
No, the answer is not B. The discovery that soybean oil prevents cancer would not reduce the cost of growing corn.
To determine the correct answer, let's break down the question and analyze the information.
The question states that if land suitable for growing corn is also suitable for growing soybeans, and further mentions a discovery that soybean oil prevents cancer. We need to determine how this discovery would affect the cost of growing corn.
To find the answer, we need to consider the relationship between corn and soybeans. If the land suitable for growing corn is also suitable for growing soybeans, it implies that both crops can be grown on the same land. If there is an increase in the demand for soybeans due to the discovery of their cancer-preventing properties, it can have an impact on the cost of growing corn.
The logic behind this is that if farmers have the option to grow soybeans along with corn, the increased demand for soybeans may encourage some farmers to switch from growing corn to soybeans. This shift in production can lead to a decrease in corn supply relative to the demand, potentially increasing the cost of growing corn.
Therefore, considering the information provided, the correct answer would be D. The discovery that soybean oil prevents cancer would decrease the demand for corn due to potential shifts in production towards soybeans, which could have an impact on the cost of growing corn.