Question by Linda H: If the demand for corn increases due to its use as an alternative energy source, what will happen to the suppl?
If the demand for corn increases due to its use as an alternative energy source, what will happen to the supply of corn’s substitute such as soybean? Explain, in economic terms, why this is so. [2] What will happen to the price of corn oil? [3] How does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil? Explain, using economic terms, why this is so.
Best answer:
Answer by georock1959
Consider the fundamentals of Supply and Demand, and you should be able to come up with your own answers for your homework.
EDIT – Corn production is often subsidized by the government, so the supply-demand relationship is affected by artificial factors.
Michael Pollan, who wrote “In Defence of Food,” begins his book with a chapter on food and corn and indeed how widespread corn use is in our society and not only for food. He says it is a problem and that the derivatives of food make it not “food”.
Interesting stuff……he says we don’t need diets we only need to live by these seven words: “eat food….not too much….mostly plants”
Add your own answer in the comments!
Tags:Alternative, Corn, Demand, energy, happen, increases, source, Sources, suppl
0 comments:
Post a Comment