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Corn Market: Ethanol in Cars

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Explain how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the United States. How would the market be affected if a new technology caused corn farming to be more efficient?

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This solution explains the use of Ethanol in Cars .The sources used are also included in the solution.

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The market for corn would be affected if the ethanol was used to fuel cars. There would be an increase in demand for corn as more corn will be required for producing ethanol. This increase in demand would first lead to an increase in price of corn. Later when the farmers grow more corn the prices will decrease but not to the ...

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