asked 202k views
20 votes
A g drought ravaged crops across the United States during the summer of 2012. What is the likely impact of this drought on the price of corn

asked
User Tin Tran
by
7.6k points

1 Answer

1 vote

Answer: Increase

Step-by-step explanation:

The price of corn will increase sharply due to the relative scarcity of corn in the market.

Graphically depicted, the Supply curve will shift to the left due to reduction in supply of corn brought upon by the drought. It will then intersect with the demand curve to bring about a new equilibrium price with a higher price.

answered
User Rumpypumpydumpy
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8.2k points
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