Big drops in prices for crops make it tough down on the farmCorn, soybean, and wheat prices have fallen roughly 50 percent from the historic highs ofearlier this year. With better-than-expected crop yields, world grain production will risenearly 5 percent this year. Grain prices have also become more closely tied to oil pricesbecause of the growing corn-based ethanol industry....8-7-Source: USA Today, October 23, 20086-5-Price and cost (dollars per bushel)MCATCGrain prices fell in 2008 becauseA. the demand for grain decreasedB. the supply of grain increasedThe graph shows the marginal cost, average total cost, and marginal revenue curves for afarmer.Draw a point to show the quantity produced when the price is $4 a bushel. Label it 1.Suppose the price falls to $2 a bushel. Draw the new marginal revenue curve. Label it MR₁.Draw a point to show the quantity produced when the price is $2 a bushel. Label it 2.Draw a shape that represents either the economic profit or economic loss when the price is$2 a bushel. Label it.4-MRO3-2-1.010 2030 4050 6070Quantity of grain (thousands of bushels per year)80>>> Draw only the objects specified in the question.

Step 1:Grain prices fell in 2008 because:Since the crop yields are better than expected, it's…

Answered: Big drops in prices for crops make it…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 6.12P

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IBM sold its personal computer (PC) and laptop business to Leonova (a Chinese company). HP and Compaq merged into one company. Dell is having trouble keeping its sales volume growing. These are indications that the supply of PCs produced by US companies should eventually ______________. >>>Is it decrease? Due to more Chinese computers?
Ma3. 15) The US. has run down the nation's SPB, Strategic Petroleum Reserve, to levels not seen it since March 1984! At1.0million bbls per day, what was the impact on the global oil price if there was no countermeasure employed by OPEC+? Knowing that Russian oil production has declined and is expected to be1.1million bbls per day less than prewar levels AND the 1.0 million bbls per day that are coming off the market due to the end of the SPB release-let's say in March 2023. What do you expect to happen to the price of oil?
10- O 00 8 7 6 5- 4 M 2 H 05 1 15 2 Supply Demand 25 3 3.5 4 4.5 5 Quantity
3. A fruit is traded in a competitive world market, and the world price is $10 per pound. The consumer quantity in this price is 100 million tonnes. One year later, overall fruit prices increase to $15 and total consumer level fall to 90 million tonnes. Under this circumstance, what is the price elasticity of demand fruit?
Question: The supply and demand for 9-volt batteries are given by QD = 230 - 10P and QS = 30P-10, where P is the price per four-pack and Q measures the number of four-packs. a. Wh... The supply and demand for 9-volt batteries are given by QD=230-10P and QS = 30P-10, where P is the price per four-pack and Q measures the number of four-packs. a. What are the levels of consumer and producer surplus at the equilibrium price? b. Suppose that a hurricane causes widespread blackouts, shifting the demand curve for 9-volt batteries outward, with the new demand curve equal to QD=690-10P. If the government sets a price ceiling equal to the pre-hurricane price (the old equilibrium price), what is the level of consumer surplus? c. If the government did not impose the price ceiling, what would consumer surplus equal? Are consumers better off with the price ceiling?
Hey I am wondering if you can draw me a graph that relates to what i wrote below... Please include a graph or two showing the economic effects of the war on the production of agricultural things and explain why what is happening is happening. As a result of Russia's invasion of Ukraine, agriculture in both Russia and Ukraine was severely disrupted. This represents a decrease in supply. Because demand is up we can say that we know that the equilibrium price will increase. Because there is uncertainty surrounding the conflict and the availability of agricultural commodities this has caused an increase in demand for these commodities. In class, I learned that if supply decreases and demand increases at the same time, the combined effects would be a significant rise in the equilibrium price. Graph one shows the effect of a decrease in supply on price, and graph two shows the combined effect of a decrease in supply and an increase in demand on price. As a result of decreased supply and…
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. b) Demand will increase. j) Equilibrium Price and Quantity will remain unchanged. g) Equilibrium Quantity will decrease. c) Demand will decrease. d) Supply will increase. f) Equilibrium Quantity will increase. e) Supply will decrease. h) Equilibrium Price will increase. i) Equilibrium Price will decrease. a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements.
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. b) Demand will increase. j) Equilibrium Price and Quantity will remain unchanged. g) Equilibrium Quantity will decrease. c) Demand will decrease. d) Supply will increase. f) Equilibrium Quantity will increase. e) Supply will decrease. h) Equilibrium Price will increase. i) Equilibrium Price will decrease. a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the…
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…
(ii) Discuss the effect on the markets for sugarcane, rum and whiskey, if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?

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