Economics Questions True or False?

[Cotton C]

The elasticity of demand for good is likely to be greater in the short run than in the long run.

When the government imposes a fixed price on a commodity that is higher than the equilibrium price a surplus will exit.

An increase in the price of corn will increase the quantity of corn supplied, but it may also decrease the supply of barley.

[icebreaker3d]

The elasticity of demand for good is likely to be greater in the short run than in the long run.
- True, I believe.

When the government imposes a fixed price on a commodity that is higher than the equilibrium price a surplus will exit.
- Draw a aggregate supply and demand curve. Draw a line above equilibrium. This will cause demand to be moved back and supply to increase, thus causing a surplus. In other words, this is a price floor the government is implementing.

An increase in the price of corn will increase the quantity of corn supplied, but it may also decrease the supply of barley.
- What do you think the producers of corn will do once the price of corn increases? They will produce more to make more money. What do you think the producers of barley will do? Will they continue to produce barley if they make less from it or will they go to corn?