5. Demand and Supply - Begin each question with a graph showing the following: the market clears at price of$10 a bushel for corn and at a quantity of 100 million bushels - assume perfectly flexible prices.a. If there was an innovation machinery that plant and harvest corn, what would happen to the price of corn?Would this lead to a surplus or shortage?

Answer- There would be a surplus of corn in the market and the equilibrium price will decrease.

5. Demand and Suooly - Begin each question with a graph showing the following: the market clears at price of $10 a bushel for corn and at a quantity of 100 million bushels- assume perfectly filexible prices. a. If there was an innovation machinery that plant and harvest corn, what would happen to the price of corn? Would this lead to a surplus or shortage?

5. Demand and Suooly - Begin each question with a graph showing the following: the market clears at price of $10 a bushel for corn and at a quantity of 100 million bushels- assume perfectly filexible prices. a. If there was an innovation machinery that plant and harvest corn, what would happen to the price of corn? Would this lead to a surplus or shortage?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 4.6P

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