3. The government demands that gasoline must be made of 10% ethanol from corn.a. What happens to the corn market?b. What happens to the tortilla market?

(a) The government demands that gasoline must be made of 10% ethanol from corn. This is leads to…

Answered: 3. The government demands that gasoline…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 22RQ: When analyzing a market, how do economists deal with the problem that many factors that affect the...

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Similar questions

When analyzing a market, how do economists deal with the problem that many factors that affect the market are changing at the same time?
1. Show the market for potatoes on a graph and show what will happen if there is a drought in Idaho (where a lot of potatoes are grown) b. On another graph, show what will happen in the market for potatoes if there is a drought in China (where, I presume, a lot of rice is grown).
1. If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been a decrease in ___________ 2. In order to reduce shortages, business owners will likely _________________ prices. 3. If bad weather destroys much of the wheat crop, then growers will offer ____________ wheat at each and every price. 4. The price of wheat rises due to a bad drought. As a result, the supply of bread and pasta will ____________ 5. A government subsidy to the producers of a product will _______________ supply of a product. 6. A market in which sellers illegally sell to buyers at higher than legal prices is called ________________ 7. Market ________________ refers to a situation in which market price is at a level where there is neither a shortage nor a surplus. 8. When the government taxes suppliers for the goods they sell, the ________________ curve shifts leftwards
In Louisiana, florists must be licensed by the state. In many states, auctioneers mustbe licensed as well. Barbers and beauticians are also often subject to licensing. Trade groups willusually say that these regulations are to ensure quality. What else might be at work? Does thishurt consumers? How does it affect the market? (Use a supply and demand diagram to answer.)
In the United States, oranges are grown primarily in Florida and California. Imagine if there is a freeze in Florida that destroys 20% of the orange crop. What would happen to the market for Florida oranges? How would the California orange market change?
(A) Given the following data on individual supply and demand, calculate the market supply and demand. (B) what is the equilibrium price? (C) supposed the current price is $4, at this price, how much of a shortage or surplus exists in gallons?
Economics The following table shows the demand and supply schedules for potato chips. Price (cents per bag) Quantity demanded Quantity supplied (Millions of bags per week) 50 16 11 60 15 12.5 70 14 14 80 13 15.5 90 12 17 100 11 18.5 (i) Draw a graph of the potato chip market and show the equilibrium price and quantity exchanged. (ii) If the price is 90 cents a bag, is there a shortage or a surplus, and how does the price adjust? (iii) A new dip increases the quantity of potato chips that people want to buy by 2.5 millions bags per week at each price. (a) Does the demand for chips change or the supply of chips change? Why? (b) How do the equilibrium price and the equilibrium quantity exchange change? Explain and show in above diagram. (iv) If a virus destroys potato crops and the quantity of potato chips produced decreases by 2.5 millions bag a week at each price. (a) Does the demand for chips change or the supply of chips change? Why? (b) How do the equilibrium price and the…
Describe the factors that can effect demand and supply, what are their impacts on market equilibrium?
2. For each of the following, state (and support with a graph) how the change will affect supply, demand, quantity supplied, quantity demanded, equilibrium quantity, and equilibrium price in the market for French fries in Laramie. a. The Burger King on Grand Avenue closes for a remodel ). b. UW has the largest incoming freshmen class this year . c. Consumers' income increases and the price of potatoes increases .
Graph the following a. Flood destroys the rice crops. Demand remains constant. Show effects on market price and supply b. Corn grains are imported. Demand remains the same. Show effects on market price and supply c. People of town X move to town Y. Supply in town X remains the same. Show effects on market price and demand in the former d. Market price of palay is Pl5/kilo, Government increases it to P20/kilo. Show effects e. A bountiful harvest of rice in the latest harvest season. With demand remaining the same show effects on market price and supply curve.
Graph the following a. Flood destroys the rice crops. Demand remains constant. Show effects on market price and supply b. Corn grains are imported. Demand remains the same. Show effects on market price and supply c. People of town X move to town Y. Supply in town X remains the same. Show effects on market price and demand in the former d. Market price of palay is Pl5/kilo, Government increases it to P20/kilo. Show effects e. A bountiful harvest of rice in the latest harvest season. With demand remaining the same show effects on market price and supply curve. NOTE: PLEASE DON’T DO IT IN HAND-WRITTEN.
1. Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity.

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3. The government demands that gasoline must be made of 10% ethanol from corn. a. What happens to the corn market? b. What happens to the tortilla market?