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: Publication of a scientific study which concludes that the production of ethanol from corn in the United States and its use as fuel produces more carbon dioxide emissions than the use of gasoline. There may be miltiple answers f) Equilibrium Quantity will increase. d) Supply will increase. g) Equilibrium Quantity 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. e) Supply will decrease. j) Equilibrium Price and Quantity will remain unchanged. i) Equilibrium Price will decrease. h) Equilibrium Price will increase. c) Demand will decrease. b) Demand will increase
12. 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
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f) |
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d) Supply will increase. |
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g) Equilibrium Quantity will decrease. |
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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. |
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e) Supply will decrease. |
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j) Equilibrium Price and Quantity will remain unchanged. |
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i) Equilibrium Price will decrease. |
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h) Equilibrium Price will increase. |
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c) Demand will decrease. |
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b) Demand will increase |
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