The price of corn has been very volatile over the past many years and some say...

  

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The price of corn has been very volatile over the past many years and some say part of the volatility is due the use of corn for ethanol production and the impact of genetically modified corn (new technology on corn production/supply. The following table contains corn price and use data at five-year intervals from 1975 to 2015 (10 points). Year Price ($/bushel) Quantity 1975 $2.00 1980 2.50 1985 2.75 1990 2.25 1995 2.15 2000 2.00 2005 3.00 2010 2.00 2015 1.85 (millions of bushels/year) 100 110 95 97 115 120 100 19 95 100 Assume that the market for corn was in equilibrium in 1975. Use graphs and your knowledge of market dynamics (net changes in demand or supply) to explain what may have happened in the market for corn between 1975 and each of the other eight years (i.e. between 1975 and 1980, 1985, 1990, 1995, 2000, 2005, 2010, and 2015). The price of corn has been very volatile over the past many years and some say part of the volatility is due the use of corn for ethanol production and the impact of genetically modified corn (new technology on corn production/supply. The following table contains corn price and use data at five-year intervals from 1975 to 2015 (10 points). Year Price ($/bushel) Quantity 1975 $2.00 1980 2.50 1985 2.75 1990 2.25 1995 2.15 2000 2.00 2005 3.00 2010 2.00 2015 1.85 (millions of bushels/year) 100 110 95 97 115 120 100 19 95 100 Assume that the market for corn was in equilibrium in 1975. Use graphs and your knowledge of market dynamics (net changes in demand or supply) to explain what may have happened in the market for corn between 1975 and each of the other eight years (i.e. between 1975 and 1980, 1985, 1990, 1995, 2000, 2005, 2010, and 2015).

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Lets look at the provided table and utilize the data from 1975 to 2015 to analyze the price of corn Price bushel each yearProduction of ethanol in bil... View the full answer