Home > categories > Chemical > Additives > The use of corn as an additive to gasoline can lead to an increase in price of other crops (ex. soybean) ?
Question:

The use of corn as an additive to gasoline can lead to an increase in price of other crops (ex. soybean) ?

True or False? Explain please.

Answer:

i imagine its pretend because more suitable farmers are centred on growing to be more suitable corns than different plants. because the aggravating is more suitable for corn to make ethanol or gasoline. also, soybean can't replace for corn to make ethanol or gasoline to provide the choose of shoppers. the upward thrust in a unmarried sturdy (corn) will reason the decrease in different sturdy (soybean).
True. If corn were used as a additive, the cost of corn would increase (since its demand would increase). Assuming soybeans are a substitute for corn, demand for soybeans would increase (they are cheaper!), which would drive price up.
True. It will increase relative price for corn compared to other crops(soybean etc). Farmers will change to corn. It will cause a shortage in other crops. The prices will increase.

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