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Consider the market for corn in the united states

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Reference no: EM131514070

Scenario 1 (length: as needed)

Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. 

  1. Using a supply and demand diagram, show what happens to the equilibrium quantity and price of corn in the United States. 
  2. Explain why you are moving the curve(s) that you are?
  3. Using a supply and demand diagram, show how the changes in the corn market would affect the market for wheat (a substitute for corn).

Reference no: EM131514070

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