Higher corn prices should reduce the quantity demanded of corn. This is because, higher prices generally mean that consumers will have less disposable income to spend on other goods and services. The result is a shift in the demand curve for corn so it slopes downward. Higher corn prices should reduce the quantity demanded of corn. This is because, higher prices generally mean that consumers will have less disposable income to spend on other goods and services.
The result is a shift in the demand curve for corn so it slopes downward. Consumers would buy more chicken and beef instead which are cheaper than pork or eggs since they’re not price sensitive items like milk or bread also wheat flour can be substituted with rice flour as an alternative source of protein-rich carbohydrates while cutting out sources such as soy beans (which also has health benefits). When one commodity’s price increases relative to others’, people will substitute away from purchasing products made using that input.
