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…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA

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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?
Despite acknowiedging the avian flu outbreak, what does Senator Warren attribute most of the increase in egg prices to? How much did Cal-Maine Foods profit increase from December 2021 to December 2022?
Given the following data on individual gasoline supply and demand, calculate the market supply and demand, and then answer two questions. Instructions: Enter your responses as a whole number. Price per Gallon $5 Quantity Demanded (Gallons per Day) $4 $3 $2 Al Betsy Casey Daisy Eddie Market Total 1 0 2 1 3 1 2 2 3 1 1 3 4 2 W N 4 1 3 4 3 $1 5 2 4 6 5 Price per Gallon Quantity Supplied (Gallons per Day) $5 $4 $3 $2 $1 Firm A Firm B Firm C Firm D Firm E Market Total 3 3 2 7 5 3 6 4 3 6 5 3 4 2 2 2 W N 3 1 2 1 3 2 0 2 1 a. What is the equilibrium price? $ per gallon b. Suppose the current price is $4. At this price, how much of a shortage or surplus exists? There would be a (Click to select) of gallons per day.
(Table: Demand Schedule for Whatchamacallits) Use Table: Demand Schedule of Whatchamacallits. The market for whatchamacallits consists of two producers, Emma and Joshua. Each firm can produce whatchamacallits with no marginal cost or fixed cost. If industry output is 700, each firm's profits will be than they would be at the output of 500, which maximizes industry profit. Table: Demand Schedule for Whatchamacallits Quantity of Whatchamacallits Price of a Whatchamacallit $10 9 8 7 6 5 43 1 0 a. $150 less O b. $150 more O c. $200 more O d. $200 less Demanded 0 100 200 300 400 500 600 700 800 900 1,000
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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