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markets2 - (a Using graphical and quantitative analysis...

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Additional Problem 2: Market Analysis During the fall growing season Mr. Redenbacher, a farmer, expects the supply relationship for corn to be Q = 500 bushels. Based on demand information from previous seasons and his economic wisdom, Farmer Redenbacher postulates that demand for his corn can be described as P = 150 - 1/5Q, where P is the demand price per bushel of corn.
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Unformatted text preview: (a) Using graphical and quantitative analysis explain the price that farmer Redenbacher will charge so as to sell all of his corn. (b) If the price floor is imposed at a price of $60 per bushel, explain, with as much detail as possible, the effects this control will have on Farmer Redenbacher’s enterprise and anyone who is affected by this control....
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