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supply and demand

The main thing is that many farmers have converted their acreage from wheat to corn to take advantage of the demand for ethanol, used in gasoline and which draws very high prices for growers. Farmers that had planted wheat for 50 years are now planting corn. How will this affect the supply and demand?

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There are two markets that will be affected by this change - the wheat market and the gas market. First thing is that the supply of wheat will go down, because farmers would not grow as much wheat now as before. So the supply curve for wheat will shift ...

Solution Summary

This job considers supply and demand.