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

Factor markets, A firm in a perfectly competitive product market takes the ...

A firm in a perfectly competitive product market takes the price of the product as given. Similarly, a firm in a perfectly competitive factor market takes the price of the factor

Advocacy of globalisation, Advocacy of Globalisation: In support of th...

Advocacy of Globalisation: In support of the movement for globalisation, the following arguments are put forth: i) Globalisation promotes foreign direct investment and, thu

Oppurtunity cost, 1. Assume that Malaysia can produce cencaluk at 25 bottle...

1. Assume that Malaysia can produce cencaluk at 25 bottles per worker and belacan at RM5 per worker. Assume that Indonesia can produce 10 bottles of cencaluk per worker and 20 pack

MIF, What is the purpose of the IMF and why might the IMF be called the “le...

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country

Volume of trade, Volume of Trade: It relates to the size of internatio...

Volume of Trade: It relates to the size of international transactions. Since a large number of commodities enter in international transactions and their aggregate can be found

Is there any relation between inflation and unemployment, Is there any rela...

Is there any relation between inflation and unemployment?  The Phillips Curve was a relationship among unemployment and inflation discovered by Professor A.W. Phillips. He foun

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