Calculate the following:The new equilibrium price of corn =dollars per bushelThe new equilibrium quantity of cornNew consumer surplusbillion dollars.New producer surplus =billion dollars.billion bushels Price (Dollars per Bushel)950900850D80075070065060055050045040035030025020015010050003 6 91215S18212427Bushels of Corn (Billions)The graph above shows hypothetical demand and supply functions for corn in the U.S. Oilprices increase due to some political problems in middle east. This causes the marginal costof producing each bushel of corn to increase by $150.00. This is because, oil is used toproduce gasoline that farmers use to operate tractors, groundwater water pumps, and otherfarming equipment. Higher gasoline prices also affect the costs of transporting corn toconsumer centers. This number may, of course, be unrealistic. But it will make the graph lessmessy and calculations less cumbersome.Calculate the following:

New Equilibrium PriceThe original equilibrium price is at $1.50 per bushel where the supply curve…

Answered: Calculate the following: The new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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