AssignmentEcon.Wk2.AbbigailH.

AssignmentEcon.Wk2.AbbigailH. - Corn and the Economy 1 THE...

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Corn and the Economy 1 THE RATIONAL EFFECTS OF CORN PRICES AND WHAT THEY CAN DO TO THE ECONOMY Abbigail Hjerpe Corn and the Economy DeVry University Blended Economics 312 Professor Douglas Copeland November 8, 2010
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Corn and the Economy 2 THE RATIONAL EFFECTS OF CORN PRICES AND WHAT THEY CAN DO TO THE ECONOMY If there is an increase for corn the price will probably go up because not only will it be used as an energy source but it will also more than likely have a temporary shortage which also raises the price of corn. This will make the demand for soybeans high from people that are substituting so there will probably be a higher demand for soybeans in turn meaning that soybeans will not have as high o a demand in supply as corn but the price for soybeans will go up as well, since it is a substitute for corn. If there was a shortage for corn then the price of both would have to rise also because of the increase in demand for soybean. Which means that farmer will also have an increase in corn and its substitute soybeans. Using the determinants of supply I would assume that the farmer would want to get the
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AssignmentEcon.Wk2.AbbigailH. - Corn and the Economy 1 THE...

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