In the following situation, briefly describe what happens to (1) supply, (2) demand, (3) quantity, and (4) price in each relevant market. If one or more of these things do not change in a given market, be sure to note that, too. 

New technology makes it less costly to formulate ethanol from corn. What happens to the markets for (a) gasoline; (b) food products related to corn? 

(Key background information: Ethanol can be blended with gasoline to create a fuel that is slightly higher octane, and otherwise indistinguishable from gas so long as the blend is not too high. Also, corn is the primary source of feed for all livestock animals and also used in the production of nearly all processed foods).

 

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