Question

Suppose the price of sweet corn increases this summer (and is expected to remain at this level for at least a couple of years). All other things being the same, you would expect: quantity supplied to remain constant for the following summers. quantity supplied to increase by the same amount as each of the following summers. quantity supplied to increase more this summer than in the following summers. quantity supplied to increase more in the following summers than this summer.

Answer 1

Answer:

The expectation would be for the quantity supplied to increase more this summer than in the following summers.

Explanation:

The quantity supplied would increase because the quantity supplied always follows the same direction as price, and since the price is not expected to change for a few years, then the quantity will also not change after the first increase.