The United States produces corn in abundance whereas Japan faces a shortage of corn. a. If the
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The United States produces corn in abundance whereas Japan faces a shortage of corn.
a. If the United States starts to export corn in large quantities to Japan, what do you predict will be the effect on the price of corn in Japan?
b. Will the United States eventually run out of corn?
c. Do you think the Hotelling Principle applies to United States’ corn? Explain why or why not.
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