Remaining Time: 28 minutes, 01 second. Quantity supplied per year, in 100 50 20
ID: 1134081 • Letter: R
Question
Remaining Time: 28 minutes, 01 second. Quantity supplied per year, in 100 50 20 per ofbushels $2.50 3.00 Farmer Sally Farmer Joe Farmer Ivan Farmer Archer 4.00 4.50 If the market price of corn is $3.25, the quantity supplied in the market for corn would equal thousand 170 QUESTION 18 10 points Save Refer again to the table in the previous question. If the market price of corm increased from $3.25 to $3.80, the result would be O the quantity of com supplied would now equal S0 thousand bushels per year. O a leftward shift in the demand for corn. O a rightward shift in the supply of corn. 0 the quantity of com supplied would rise by 50 thousand bushels per year. Save All Answers SaveaExplanation / Answer
Question 18
An individual farmer will be willing to supply corn till the market price is greater than his marginal cost.
Now, market price increases from $3.25 to $3.80 per bushel.
The old market price of $3.25 per bushel was greater than the marginal cost per bushel of farmer Jane and farmer Sally.
So, at old price of $3.25 per bushel, a total of (100+70) 170 thousand bushels per year would be supplied.
The new market price of $3.80 per bushel was greater than the marginal cost per bushel of Farmer Jane, Farmer Sally, and Farmer Joe.
So, at new price of $3.80 per bushel, a total of (100+70+50) 220 thousand bushels per year would be supplied.
Thus,
It can be seen that as market price increases from $3.25 per bushel to $3.80 per bushel, the quantity of corn supplied would rise by 50 thousand bushels per year.
Hence, the correct answer is the option (4) [the quantity of corn supplied would rise by 50 thousand bushels per year].