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(Solved): Suppose there is a drought that reduces the harvest of corn. At the same time, the demand for corn i ...



Suppose there is a drought that reduces the harvest of corn. At the same time, the demand for corn increases due to expanded use of ethanol fuels. Which one of the following statements is true?a. The price of corn will increase, but the effect on the quantity of corn sold is ambiguous.b. The price of corn will decrease, but the effect on the quantity of corn sold is ambiguous.c. The quantity of corn sold will increase, but the effect on the price of corn is ambiguous.d. The quantity of corn sold will decrease, but the effect on the price of corn is ambiguous.e. The effect on both the quantity of corn sold and the price of corn is ambiguous



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