The correct answer is "Decrease; increase".

Here's why:

1. A decrease in the price of corn, which is an input in the production of ethanol, reduces the cost of producing ethanol.

2. When the cost of production decreases, suppliers can afford to supply more at each price level, or equivalently, they can afford to supply the same quantity at a lower price. This is represented by a rightward shift in the supply curve in a supply-demand graph.

3. When the supply increases, the equilibrium price of ethanol (where supply equals demand) decreases. This is because suppliers are willing to sell at lower prices.

4. At the same time, the equilibrium quantity (the quantity bought and sold at the equilibrium price) increases. This is because lower prices make ethanol more attractive to buyers, increasing the quantity demanded, and suppliers are willing to sell more at these lower prices.

So, a decrease in the price of corn will decrease the market price and increase the market quantity of ethanol.

Question

The correct answer is "Decrease; increase".

Here's why:

1. A decrease in the price of corn, which is an input in the production of ethanol, reduces the cost of producing ethanol.

2. When the cost of production decreases, suppliers can afford to supply more at each price level, or equivalently, they can afford to supply the same quantity at a lower price. This is represented by a rightward shift in the supply curve in a supply-demand graph.

3. When the supply increases, the equilibrium price of ethanol (where supply equals demand) decreases. This is because suppliers are willing to sell at lower prices.

4. At the same time, the equilibrium quantity (the quantity bought and sold at the equilibrium price) increases. This is because lower prices make ethanol more attractive to buyers, increasing the quantity demanded, and suppliers are willing to sell more at these lower prices.

So, a decrease in the price of corn will decrease the market price and increase the market quantity of ethanol.

Knowee AI · Accepted Answer

The correct answer is "Decrease; increase".

Here's why:

1. A decrease in the price of corn, which is an input in the production of ethanol, reduces the cost of producing ethanol.

2. When the cost of production decreases, suppliers can afford to supply more at each price level, or equivalently, they can afford to supply the same quantity at a lower price. This is represented by a rightward shift in the supply curve in a supply-demand graph.

3. When the supply increases, the equilibrium price of ethanol (where supply equals demand) decreases. This is because suppliers are willing to sell at lower prices.

4. At the same time, the equilibrium quantity (the quantity bought and sold at the equilibrium price) increases. This is because lower prices make ethanol more attractive to buyers, increasing the quantity demanded, and suppliers are willing to sell more at these lower prices.

So, a decrease in the price of corn will decrease the market price and increase the market quantity of ethanol.

A decrease in the price of corn, an input in the production of ethanol, will _ the market price and the market quantity of ethanol.1 pointIncrease; increaseNone of the other choices is correct.Increase; decreaseDecrease; decreaseDecrease; increase

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A decrease in the price of corn, an input in the production of ethanol, will _________ the market price and ________ the market quantity of ethanol.1 pointIncrease; increaseNone of the other choices is correct.Increase; decreaseDecrease; decreaseDecrease; increase

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A decrease in the price of corn, an input in the production of ethanol, will _ the market price and the market quantity of ethanol.1 pointIncrease; increaseNone of the other choices is correct.Increase; decreaseDecrease; decreaseDecrease; increase