46. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn, what will happen if the government eliminates the price support for corn? a) Demand for ethanol will increase. Ob) Demand for ethanol will decrease. Oc) Supply of ethanol will increase. d) Supply of ethanol will decrease. e) Both (a) and (c)

46. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn, what will happen if the government eliminates the price support for corn? a) Demand for ethanol will increase. Ob) Demand for ethanol will decrease. Oc) Supply of ethanol will increase. d) Supply of ethanol will decrease. e) Both (a) and (c)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Given the following demand and supply curves, obtain the market-clearing price and graph the equilibrium quantity. Qs = 50P, +100 la = 1300 - 10PX
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