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

Graph questions, explain what will happen to price , the marginal cost of r...

explain what will happen to price , the marginal cost of rice, and the quantity produced if the government sets a production quota of 2000 bags a week. draw a graph and explain you

Reserve accounts, if a bank has $6000 in checkable deposits and the require...

if a bank has $6000 in checkable deposits and the required reserve ratio is 0.2 then the bank can lend how much money?

Deuterium, preperation methods of deuterium

preperation methods of deuterium

How have economists traditionally defined economic growth, How have economi...

How have economists traditionally defined "economic growth," and how is that different from "living standards growth"?  Economists have traditionally explained economic growth

Molarity, i have 40cm3 of hcl of 1 molarity i want to dilute it to 0.2m can...

i have 40cm3 of hcl of 1 molarity i want to dilute it to 0.2m can yo please help

Hypotheses in fdi, The following hypotheses are concerned with the general ...

The following hypotheses are concerned with the general impact of FDI from Costa Rica trading partners on exports from the technology sector:  H1:   There is a positive signifi

Preference to non-debt creating capital flows, Preference to Non-debt Creat...

Preference to Non-debt Creating Capital Flows: The most important element of strategy has been the paradigm shift in the attitude towards inflow of capital from abroad. Capit

Determine the post war rental rate, Consider two hypothetical nations, Solo...

Consider two hypothetical nations, Solowia and Growia, which are defeated in wars. These two nations were suffered from wars differently; the damage is on capital stock in Solowia,

Explain abput capitalist class, Q. Explain abput Capitalist Class? Capi...

Q. Explain abput Capitalist Class? Capitalist Class:Group of individuals (which represents just a couple of percent of population in advanced capitalist countries) which contro

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