Ask Question
BusinessBusiness
27 January, 19:26

The market for corn is initially in equilibrium. Suppose that the production of biofuels, which use corn as an input, increase, and at the same time, increases in the price of oil cause farm production costs to rise. Explain the effect on equilibrium price and quantity in the corn market.

+1
Answers (1)
  1. 27 January, 20:04
    0
    The price of corn increases, but the effect on the amount of equilibrium cannot be determined without further information.

    Explanation:

    Due to the increase in both the biofuel that is produced from corn and the costs of field production of corn oil, it is obvious that an increase in demand also increases corn grain.

    However, in order to quantify the imbalance that was generated from these new demands and offers, more quantification information is needed, so it is obvious that an imbalance was generated but with the exposed data it cannot be quantified.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The market for corn is initially in equilibrium. Suppose that the production of biofuels, which use corn as an input, increase, and at the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is an ad hominem fallacy? Select one: a. Other brands of toothpaste might promise you "dazzling white teeth," but those corporations are deceiving you. Only Lima Bean Green Toothpaste will give you the smile you desire. b.
Answers (1)
When the price level rises from 104 to 124, real GDP falls from $5 trillion to $4 trillion. What is a possible explanation for this event? A. Less investment B. Falling exports C. Decreased consumption D. All of the above
Answers (1)
A company has 1,500 shares of 7%, $100 par value preferred stock the company issued at the beginning of Year 1. All remaining shares are common stock.
Answers (1)
What will the multiplier be when the mps is 0, 0.4, 0.6, and 1? what will it be when the mpc is 1, 0.90, 0.67, 0.50, and 0? how much of a change in gdp will result if firms increase their level of investment by $8 billion and the mpc is 0.
Answers (1)
The country of Growpaw does not trade with any other country. Its GDP is $20 billion. Its government purchases $3 billion worth of goods and services each year, collects $4 billion in taxes, and provides $2 billion in transfer payments to households.
Answers (1)
New Questions in Business
Commercial paper is very popular with many firms because Multiple Choice it can usually be issued below the prime rate. there are no required lines of credit at the bank. it satisfies the firm's need for long-term funds.
Answers (1)
Andrews Corp. ended the year carrying $33,836,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
Answers (1)
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,100 direct labor-hours will be required in May. The variable overhead rate is $8.50 per direct labor-hour.
Answers (1)
Trinidad Schwab is an employee at the Kyletown Fire Department. He received the following benefits from his employer during 2019 for company purposes: On-site housing: $385 per month Employer-provided cell phone: $95 per month Meals: $190 per month
Answers (1)
Presented below is information related to Crane Corp. for the year 2020. Net sales $1,040,000 Write-off of inventory due to obsolescence $64,000 Cost of goods sold 624,000 Depreciation expense omitted by accident in 2019 44,000 Selling expenses
Answers (1)
Home » Business » The market for corn is initially in equilibrium. Suppose that the production of biofuels, which use corn as an input, increase, and at the same time, increases in the price of oil cause farm production costs to rise.
Sign Up Forgot Password?