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Consider the following headlines for the corn market. First identify whether supply or demand shifts and in which direction (increase or decrease).

  1. Consider the following headlines for the corn market. First identify whether supply or demand shifts and in which direction (increase or decrease). Secondly, state the determinant that is causing the change (this must be one of the 5 determinants on demand side, or one of the 7 on supply side from your lecture notes). Thirdly, how does this change the equilibrium price and quantity? (Use direction arrows or type the words “increase” or “decrease” into the blanks: (Pe___, Qe ___).

     The market is: Corn

a.     Midwest corn farmers pay higher taxes.

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b.

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