Supply and demand model, Microeconomics

Assignment Help:

The vast majority of corn and soybeans produced in the United States is grown in the Midwestern states including: Nebraska, Iowa, Illinois, Indiana, and Ohio. This region experienced severe drought during the growing season.  Some of the effects of the drought on corn and soybean production are detailed in the cover page summary of a US Department of Agriculture Crop Production Report published August 10, 2012 (see below).  In addition, a video of an interview with an agricultural economist, Dr. Bruce Babcock, discusses some issues that are a consequence of the drought.

Based on information contained in the US Department of Agriculture Crop Production Report and the interview of Dr. Bruce Babcock, discuss the likely effects the drought will have on the corn and soybean markets. Specifically, based on your knowledge of supply and demand models, discuss the effects the drought will have on corn and soybean equilibrium quantities and prices.

There are proposals to temporarily remove the mandatory use of ethanol in gasoline (Renewable Fuels Standard).  The video discusses some of the issues.  

Based on your knowledge of supply and demand models, explain how temporary removal of the mandatory use of ethanol in gasoline would affect the corn market, given the US Department of Agriculture production forecast?  Explain how other related markets might also be impacted.

Hint: It may be useful to graph these scenarios before writing your answer.  Please do not include your graph in your submission, but describe the results in your written analysis.  Imagine you are preparing your analysis for a local news report where the audience is not likely to be familiar with supply and demand analysis (models).


Related Discussions:- Supply and demand model

Statistics, define statistics in plural and singular sense

define statistics in plural and singular sense

Demand and supply, what will be the effect on price and quantity when suppl...

what will be the effect on price and quantity when supply and demand changes in different directions but same magnitude?

.marketing structures, discuss the implications of various market structure...

discuss the implications of various market structures(competitive and non-competitive)for price determination

Is economic development is based on goverment, Is economic development is b...

Is economic development is based on goverment Many governments--mainly unelected governments-aren't that interested in economic development. Giving valuable industrial franchis

Demand pull inflation and cost-push inflation, Demand Pull Inflation and Co...

Demand Pull Inflation and Cost-Push Inflation: Demand Pull Inflation: It describes a sustained increase in the general price level that is caused by a permanent increase in n

Duopoly, characteristic of duopoly

characteristic of duopoly

Markets, Syndicated and organized oligopoly

Syndicated and organized oligopoly

Narrowness definition of commodity, Why narrowness of definition of a commo...

Why narrowness of definition of a commodity may influence price elasticity of demand

Mathematical presentation of utility maximisation, Mathematical Presentatio...

Mathematical Presentation of Utility maximisation: Consumer's objective is to maximise her utility by solving UMP. To solve UMP, we set the Lagrange function of the correspond

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd