Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 2, Problem 12RQ
To determine
Change in price.
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Ethanol, a fuel, is made from corn. Ethanol production increased 5.5 times from
2000 to 2008 and another 34% from 2008 to February 2013 (www.ethanolrfa.org).
What effect did this increased use of corn for producing ethanol have on the price
of corn and the consumption of corn as food?
1.) Use the line drawing tool to draw either a new demand curve (D2) or a new
supply curve (S,) that shows how the increased use of corn for producing ethanol
affects the market for corn as food, Properly label this line.
2.) Use the point drawing tool to indicate the new market equilibrium. Label this
point 'e2'.
Carefully follow the instructions above, and only draw the required objects.
What happens to the equilibrium price and equilibrium quantity of corn as food?
In the market for corn as food, the equilibrium price
V and the
D1
Q1
equilibrium quantity
Q, quantity of corn as food
...
$. price of corn
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product
X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
An increase in the price of a product that is a close substitute for X will
Why would demand for steel may decline when demand for aluminum rises? What kind of relationship exists between the two?
Chapter 2 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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