Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) into ethanol. b) Demand will increase. j) Equilibrium Price and Quantity will remain unchanged. g) Equilibrium Quantity will decrease. c) Demand will decrease. d) Supply will increase. f) Equilibrium Quantity will increase. e) Supply will decrease. h) Equilibrium Price will increase. i) Equilibrium Price will decrease. a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements.
14. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its
b) Demand will increase.
j) Equilibrium Price and Quantity will remain unchanged.
g) Equilibrium Quantity will decrease.
c) Demand will decrease.
d) Supply will increase.
f) Equilibrium Quantity will increase.
e) Supply will decrease.
h) Equilibrium Price will increase.
i) Equilibrium Price will decrease.
a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements.
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