Use supply and demand analysis to explain what is most likely to happen to the price and quantity of corn when there is an increase in the demand for ethanol, which is produced using corn. What other effects would such a change in the corn market have
on the price of beef, the price of farmland, and the price of corn syrup?
Please provide the best answer for the statement.
In such a market for corn, the supply curve does not change, but the demand curve increases because corn is used to produce ethanol. The rightward shift in the demand curve increases the price of corn and increases the quantity demanded and the quantity supplied for corn. The increase in the price of corn is likely to increase the price of corn-fed beef, increase the price of farmland used to grow corn, and increase the price of corn syrup using to make soft drink and other products.
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The unit of account is defined as
A) an object that is accepted in return for goods and services. B) the medium of exchange. C) the exchange of goods and services directly for other goods and services. D) barter. E) an agreed upon measure for stating prices of goods and services.
The above table has the demand and supply schedules for money. If the Fed increases the quantity of money by $0.1 trillion, the new equilibrium nominal interest rate is
A) 5 percent. B) 7 percent. C) 6 percent. D) 9 percent. E) 8 percent.