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)

Suppose that the percentage change in supply is 15%, the price elasticity of supply is 3, and the percentage change in the equilibrium price is 3%. What is the price elasticity of demand? A) 3 B) 0 C) 1     D) 2   Suppose that the percentage change in supply is 25%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 5%. What is the price elasticity of supply? A) 2 B) 5 C) 4     D) 0   Suppose that the percentage change in demand is 16%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply? A) 2 B) 1 C) 3     D) 0

In the short run, what happens to the competitive market price of gasoline when a state's demand curve shifts to the right during warm months? In your answer, distinguish between areas in which regular gasoline is sold and jurisdictions that require special blends. Show the effect of a shift of the demand curve in areas that use regular gasoline. 1.) Use the line drawing tool to draw a new demand curve for regular gasoline. Label this line 2.) Use the point drawing tool to identify the new market equilibrium. Label this point 'E₂'. Carefully follow the instructions above, and only draw the required objects. Show the effect of both a small and a large shift of the demand curve in a jurisdiction that uses a special blend. 1.) Use the line drawing tool to draw a new demand curve for special-blend gasoline for a small increase in demand such that the equilibrium price does not change. Label this line 'D³. 2.) Use the point drawing tool to identify the corresponding market equilibrium for a…

4. U.S. agricultural farmers are excited since the government announced an increase in subsidies even though the substitutes for agricultural goods that are imported have increased in demand; therefore, please illustrate by constructing a supply and demand graph, the direction in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.

Q4) Assume a market of a specific good. The demand and supply equation is as shown below: Pp = 70 – 3QD Ps = 5 + 20s The demand price elasticities is inelastic. From the firms' perspective, the revenue would be higher if price increases. Let's assume that the market is currently not at the equilibrium with the market price being higher by 2 units than the equilibrium price. 1. Find the market quantity 2. Find the new Consumer Surplus 3. Find the new Producer Surplus

14. 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; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) into ethanol. There will be multiple answers     h) Equilibrium Price will increase.     e) Supply will decrease.     j) Equilibrium Price and Quantity will remain unchanged.     d) Supply will increase.     c) Demand will decrease.     g) Equilibrium Quantity will decrease.     f) Equilibrium Quantity will increase.     a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will be affected unless the government changes…

3. Find the consumer's and producer's surplus: Supply: p=14.4+ .3g- .001q² Demand: p=160-2q+.005q²