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Ellucidate effect has the sharp increase in price of coen

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Reference no: EM1337567

Question 1: Some states are requiring that ethanol be mixed with gasoline to comply with anti-pollution laws. Ethanol can be made from corn. What effect are these policies having on the equilibrium price and quantity of corn?

Question 2: Corn is a key input in the poultry, dairy, hog, and cattle industry. What effect has the sharp increase in the price of corn had on these industries?

Please use supply/demand graphs to analyze shifts in supply and demand and the resulting changes in market equilibrium in the situations described in Questions 1 and 2. Show the shifts of either demand or supply curves.

Illustrate graphically how the event described in Question 1 affects the equilibrium price and quantity of corn.

Illustrate graphically how the event described in Question 2 affects the industries.

 

Reference no: EM1337567

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