Analyse the impacts of increased demand for biofuels

Assignment Help Microeconomics

Reference no: EM1381333

Part A: Your first task is to use models and concepts relating to producer behaviour to analyse the effects of increased demand for biofuels on the inputs to its production (including crops, such as corn).

i. Analyse the impacts of increased demand for biofuels on the demand for and price of crops such as corn.
ii. Analyse how developments in agricultural and conversion technology might influence the impacts identified in Part A (i).
iii. Analyse the effects of increased competition between participants in the oil market on the impacts identified in Part A (i).

Part B: Your second task is to use models and concepts relating to consumer behaviour to analyse the effects of changing fuel and crop prices on individuals.

i. Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).

ii. Repeat the Part B (i) analysis for a high income person who spends a relatively small proportion of her income on food. Comment on the distributional consequences of the changes in the price levels.

Part C: Your final task is to identify and discuss possible government policy responses to the issues raised in Parts A & B.

Reference no: EM1381333

Questions Cloud

Glycogen synthesis and degradation in liver and muscle : Glycogen synthesis and degradation in liver and muscle is very similar. Which of following enzymes is not used in both muscle and liver for these metabolic pathways?

Explain the importance of correctly stating the objective : Explain the importance of correctly stating the objective function and constraints in linear optimization problems

Individual phylogenetic methods : As we have discussed in class, individual phylogenetic methods are best suited to particular kinds of troubles. For each of the following data sets, assess the suitability of maximum parsimony to that data set.

What do you think is the purpose of the accident : What do you think is the purpose of the accident investigation? Explain how the NTSB can be a reactive organization in terms of accident/incident investigation (after the fact) yet, still be a proactive safety organization.

Analyse the impacts of increased demand for biofuels : Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).

Describe your most memorable experience with a salesperson : describe your most memorable experience with a salesperson that was positive and made you feel comfortable.

Why is the skin on worms : Discuss why is the skin on worms, the gills in fish, and the lungs in humans good epithelial surfaces for respiration. Be specific.

Resource with a very low average utilization rate : Identify one example of a resource with a very low average utilization rate, and a second example with a very high average utilization rate.

Nitrite inhibit anaerobic growth : According to your understanding of the nitrate reductase and nitrite reductase tests, why would the inclusion of nitrite inhibit anaerobic growth?

User Account

All Pages