Reference no: EM13986849
Assume you are a farmer who grows corn and cotton. In the past, you have planted half of your land in corn and half in cotton. In recent years, the government has mandated that gasoline contain 10% ethanol (fuel made from corn). Which of the following will happen in the CORN market as a result of the government mandate?
A) The demand line for corn will shift right, causing a decrease in the price of corn. As a farmer, I will produce more corn due to this lower price, thus increasing the quantity supplied of corn.
B) The demand line for corn will shift to the right, causing an increase in the price of corn. As a farmer, I will plant more corn and less cotton, thus increasing the quantity supplied of corn.
C) The supply line for corn will shift right, thus causing the price of corn to increase. As a farmer, I will produce more corn, thus increasing the quantity of corn demanded.
D) The demand line for corn will shift left, causing a decrease in the price of corn. As a farmer, I will produce more cotton due to the low corn prices, thus decreasing the quantity supplied of corn.
E) The demand line for corn will shift left, causing an increase in the price of corn. As a farmer, I will produce more cotton to take advantage of lower prices on cotton, thus decreasing the quantity supplied of corn.
|
The profit maximizing demand for labor and amount of output
: Thoreau has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C, L) = CL. The household also has a home production technology summarized by a production function. Now suppose that there is a competitive fi..
|
|
Review the case for analysis
: Review the Case for Analysis: The Chairman's Quandary on page 361 in the textbook, Economics for Managers Summarize the recent policy of the Federal Reserve concerning the level of interest rates and the reasons for this policy. What problems can ari..
|
|
Explain how this change in exchange rate
: Canada is the largest trading partner for the united states. in 2009 , united state exports to Canada were more than $171 billion and imports from Canada totaled more than $224 billiom. On January 1, 2009, the exchange rate between the Canadian dolla..
|
|
Midpoint method-elasticity of labor supply between wages
: Juanita is a college student who lives in Miami and provides math tutoring for extra cash. At a wage of $40 per hour, she is willing to tutor 7 hours per week. At $50 per hour, she is willing to tutor 10 hours per week. Using the midpoint method, the..
|
|
CORN market as a result of the government mandate
: Assume you are a farmer who grows corn and cotton. In the past, you have planted half of your land in corn and half in cotton. In recent years, the government has mandated that gasoline contain 10% ethanol (fuel made from corn). Which of the followin..
|
|
To combat the problem of adverse selection
: To combat the problem of adverse selection, __________ informed parties can employ ___________ techniques.
|
|
Example of adverse selection
: Which of the following is NOT an example of adverse selection
|
|
Price leadership-the firm that uses a price taker is
: Firms have excess capacity in the long run under: The firm that uses a price taker is: In the long run, which type of firm may follow "price leadership"? Under perfect competition, in the long run, firms:
|
|
Different in interpretation of coefficient in SLRM and MLRM
: What is the different between interpretation of coefficient in SLRM and MLRM? How does it relate to omitted variable bias? How about a linear versus nonlinear multiple regression model coefficients? (quadratic). What is the role of controls?
|