Twoofthemajor countriesofplantingcornisUnited Statesand China….

Question Answered step-by-step Twoofthemajor countriesofplantingcornisUnited Statesand China…. Twoof the major countries of planting corn is United States and  China. In the past ,corn was mainly consumed as food and feed, but now corn processing industry has developed rapidly. Among the three majorkinds of grain, corn is the most suitable type to be used as industrial raw material and is also the mostly processed grain. Corn processing is widely applied in food industry, medical industry and chemical industry. Projected prices for corn wereUSD3.86 per bushelin 2016, USD3.96in 2017 and USD3.96 in 2018. The settlement price for December2019 contract on Monday, November 19 was USD3.96, coincidently the same as the projected prices in 2017 and 2018. Therefore, current future price suggest that 2019 projected price for corn will be at the same level as that of recent years. Required: With the aid of demand and supply diagram, analyse the impact of the following events on the equilibrium price and quantity in 2019. i,    Due to La Nina effect, the northern hemisphere is expected to experience severe drought this coming spring.    (4 Marks) An improvement in gene splicing technology, new healthier varieties of corn are developed. (4 Marks) Soybeans is foundto be a cheap substitute for corn in the manufacturing of biofuels.(4 Marks)      A medical research institute announces that people who consume corn oil lower the probability of cardioVascular disease.   (4 Marks) Identify and discuss THREE (3) factors that influence the price elasticity of corn.(9 Marks) [Total: 25 Marks]   Business Economics Microeconomics ECON GSFM7223 Share QuestionEmailCopy link Comments (0)