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

Wealth, Wealth: This is a stock of accumulated purchasing power stored up...

Wealth: This is a stock of accumulated purchasing power stored up from the past. For example, if you have a fat savings account accumulated from your past earnings, your curre

Production possibilty curve, why is the point outside the production possib...

why is the point outside the production possibility curve(PPC)called unttianable

Growth accounting equations , Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Isoquant, if the price of labour is 2000 per hour and the price of capital ...

if the price of labour is 2000 per hour and the price of capital is 1000 per hour.is there an efficiency point of production.

Economic instruments, Economic instruments Financial rewards, incentives an...

Economic instruments Financial rewards, incentives and penalties that operate automatically via market forces, to encourage beneficial behavior.

Example of consumer surplus, Example: The Value of Clean Air Air is fre...

Example: The Value of Clean Air Air is free in sense that we do not pay to breathe it. Question: Are benefits of cleaning up air worth the costs? People pay extra to buy

Revenues, Ask qdescribe average and marginal revenue under imperfect compet...

Ask qdescribe average and marginal revenue under imperfect competitionuestion

What do you meant by multinational corporation, Q. What do you meant by Mul...

Q. What do you meant by Multinational Corporation? Multinational Corporation: A multinational corporation (MNC) is a company that directly undertakes productive facilities or o

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