Consider the market for corn. Say whether each ofthe following events will cause a shift in the supply curve or a movement along the curve. If it willcause a shift, specify the direction. [LO 3.5]a. A drought hits corn-growing regions.b. The government announces a new subsidyfor biofuels made from corn.c. A global recession reduces the incomes ofconsumers in poor countries, who rely oncorn as a staple food.d. A new hybrid variety of corn seed causesa 15 percent increase in the yield of cornper acre.e. An advertising campaign by the beef producers’ association highlights the health benefitsof corn-fed beef.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider the market for corn. Say whether each of
the following events will cause a shift in the supply curve or a movement along the curve. If it will
cause a shift, specify the direction. [LO 3.5]
a. A drought hits corn-growing regions.
b. The government announces a new subsidy
for biofuels made from corn.
c. A global recession reduces the incomes of
consumers in poor countries, who rely on
corn as a staple food.
d. A new hybrid variety of corn seed causes
a 15 percent increase in the yield of corn
per acre.
e. An advertising campaign by the beef producers’ association highlights the health benefits
of corn-fed beef.

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