FSOT: 500 Test Prep Study Questions

Category - Economics

If a drought severely reduces the amount of corn available to consumers, what would you expect to happen?

Explanation

Answer: E - The price of corn would almost certainly go up, as the drought would reduce supply.

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Editor's note: question updated to fix error December 2022

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Additional Answers

Eric Miller says:

Your answer is incorrect unless you are suggesting the drought-impacted corn was of diminished quality, but nothing in your story suggests that.