What is the likely effect on the equilibrium price

Question # 00510773 Posted By: dr.tony Updated on: 04/12/2017 05:58 AM Due on: 04/12/2017
Subject Economics Topic Macroeconomics Tutorials:
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What is the likely effect on the equilibrium price and quantity of corn if the government requires ethanol (a corn byproduct) to be added to all gasoline to reduce emissions? This question is separate from and independent of the first question. Which curve(s) is (are) affected by this new government regulation (supply, demand, both, or neither)? Your answer must indicate the effect of that government regulation on the equilibrium price of corn (did the price go up, go down, or remain unchanged?). Your answer must also indicate the effect on equilibrium quantity (did it increase, decrease, or remain unchanged?).


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  1. Tutorial # 00507608 Posted By: dr.tony Posted on: 04/12/2017 05:58 AM
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