Assume you are a farmer who grows corn and cotton. In the past, you have planted half of your land in corn and half in cotton. In recent years, the government has mandated that gasoline contain 10% ethanol (fuel made from corn). Which of the following will happen in the CORN market as a result of the government mandate?
A) The demand line for corn will shift right, causing a decrease in the price of corn. As a farmer, I will produce more corn due to this lower price, thus increasing the quantity supplied of corn.
B) The demand line for corn will shift to the right, causing an increase in the price of corn. As a farmer, I will plant more corn and less cotton, thus increasing the quantity supplied of corn.
C) The supply line for corn will shift right, thus causing the price of corn to increase. As a farmer, I will produce more corn, thus increasing the quantity of corn demanded.
D) The demand line for corn will shift left, causing a decrease in the price of corn. As a farmer, I will produce more cotton due to the low corn prices, thus decreasing the quantity supplied of corn.
E) The demand line for corn will shift left, causing an increase in the price of corn. As a farmer, I will produce more cotton to take advantage of lower prices on cotton, thus decreasing the quantity supplied of corn.