Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 10, Problem 4E
To determine
To describe: The impact of substitution effect of ethanol for petroleum on the price of corn, wheat and soybean.
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Ethanol and sugar are both made from sugarcane, and ethanol can be used as a fuel substitute for oil. Increasing oil prices cause the demand for ethanol to increase. This will cause the ______ sugar to ______ and its price to ______.
demand for; increase; increase
supply of; decrease; increase
demand for; decrease; decrease
supply of; increase; increase
Answer the question on the basis of the given supply and demand data for wheat.
What effect will each of the following have on the supply of auto tires? A technological advance in the methods of producing tires.
Chapter 10 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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