Question

A farmer produces both corn and wheat. if the price of corn increases, the farmer will supply _____ wheat.

a.moreb.lessc.the same amount

Answer 1

b. less: because he wants to make money, if he produces less wheat ha can supply more corn which costs more.

Answer 2

Answer: Option 'a' is correct.

Explanation:

A farmer produces both corn and wheat. if the price of corn increases, the farmer will supply increase.

Since we know that there is direct relationship between price and supply.

If the price increases , the supply will also increase.

Hence, option 'a' is correct.