Response:
a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.
b. The primary factor behind the change in corn production acreage is:
A. The increased price indicates to suppliers that corn is becoming more valuable.
Clarification:
As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.
Answer:
Such expenses are variable, as they can fluctuate based on living circumstances.
