Question: How do you know this is a profit? Explain SHORTLY. (b) Assume the demand for ethanol increases. On your graphs in part (a) show what

How do you know this is a profit? Explain SHORTLY.

(b) Assume the demand for ethanol increases. On your graphs in part (a) show what will happen to each of t following in the short run. (i) The market price and quantity of corn, labeled P* and Q' (ii) The area of the profit or loss earned by the representative corn farmer, shaded completely

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