15. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: Development of a new highly efficient method of storing electrical energy (e.g. a light weight, yet structurally strong, composite material that can serve as the car body and store electricity as well). c) Demand will decrease. i) Equilibrium Price will decrease. a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements. g) Equilibrium Quantity will decrease. j) Equilibrium Price and Quantity will remain unchanged. h) Equilibrium Price will increase. e) Supply will decrease. d) Supply will increase. b) Demand will increase. f) Equilibrium Quantity will increase.
15. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the
c) Demand will decrease.
i) Equilibrium Price will decrease.
a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements.
g) Equilibrium Quantity will decrease.
j) Equilibrium Price and Quantity will remain unchanged.
h) Equilibrium Price will increase.
e) Supply will decrease.
d) Supply will increase.
b) Demand will increase.
f) Equilibrium Quantity will increase.
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