Energy policy act-minimum quantity of renewable fules

Assignment Help Business Economics

Reference no: EM131002636

Ethanol or ethyl alcohol is a motor fuel produced from sugarcane, corn or other sugar based feed stocks. In the United States, where ethanol production uses corn as feedstock, the Energy Policy Act requires that a minimum quantity of renewable fuels like ethanol be blended into gasoline. Commentators call this requirement the “corn ethanol mandate”. Currently, there is an increasing political pressure to end the ethanol requirements reflected in four bipartisan proposals that call for an end of the “corn ethanol mandate”. Briefly discuss how the end of the mandate would affect consumer surplus and producer surplus in the market for ethanol, in the market for corn, and in the market for morning cereals.

Reference no: EM131002636

Questions Cloud

What is the probability that the thief guesses your pin : American Bank randomly assigns six-digit PIN codes to their debit cards. What is the probability that the thief guesses your pin on the first try by simply randomly guessing?

Write the budget constraint : Good X and good Y are complements. U(X, Y) = min (5X, 4Y). Price of X is $5 and price of Y is $4. The total income is $80. Write the consumption ratio of good X and good Y. Write the budget constraint.

What will the annual rate of return earned by the investor : If an investor was able to purchase the winning lottery in #2 above today for $500,000, what will be the annual rate of return earned by the investor?

Explain how natural monopolies cause market failure : Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the..

Energy policy act-minimum quantity of renewable fules : Ethanol or ethyl alcohol is a motor fuel produced from sugarcane, corn or other sugar based feed stocks. In the United States, where ethanol production uses corn as feedstock, the Energy Policy Act requires that a minimum quantity of renewable fuels ..

What is the probability that it will not rain today : A tv weat man reports a 35% chance of rain today. What is the probability that it will not rain today? Explain

Demand causation equals to suppy causation : Kelly went to watch her school's basketball game. She found that the height of basketball players is taller than the average height of her school's students. So she concludes that if you play basketball, you will be taller. What mistake she made in h..

What are the obligations or debts : What are the obligations or debts that a business must pay in cash or in goods and services at some future time because of past transactions or events called and how are they reported?

Therefore governed by the uniform commercial code : Joe was diagnosed as having advanced brain cancer and the doctors believed that he had only a few days to live. He told Susan, his girlfriend, that he wanted her to have his car when he died. Susan immediately took possession of the car. As it turns ..

User Account

All Pages