Economics homework help! I don't need just an answer if you could explain how to solve these types of problems?
Show how the market for corn would be affected (given the ethanol production subsidy) if oil prices were to fall.
1.) Using the line drawing tool, draw either a new market supply curve (Upper S 2) or new market demand curve (Upper D 2). Properly label your curve.
2.) Using the point drawing tool, indicate the new market equilibrium (Equilibrium). Properly label your point.
Note: Carefully follow the instructions above and only draw the required objects.
At the same time, if oil prices fall, then the demand for land will ____,____ land prices.
Further, if oil prices fall, then the wheat demand supply curve will shift to the ___
This will ____wheat prices.