Scenario 1

Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop.

Using a supply and demand diagram, show what happens to the equilibrium quantity and price of corn in the United States.
Explain why you are moving the curve(s) that you are?
Using a supply and demand diagram, show how the changes in the corn market would affect the market for wheat (a substitute for corn).

Scenario 3

A pet store is considering adding an employee discount of 25% off anything in the store to the benefits the employees already receive. What are the long-run implications of adding this benefit to the wages that its employees receive? What would happen to the type of applicants that the pet store attracts?

Originally posted 2017-02-20 20:36:08. Republished by Blog Post Promoter