[Related to the Economics in Practice on p. 257] The Eco
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[Related to the Economics in Practice on p. 257] The Economics in Practice in this chapter describes the adjustment of t
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[Related to the Economics in Practice on p. 257] The Economics in Practice in this chapter describes the adjustment of the corn and wheat markets to the massive U.S. subsidy given to ethanol production. The subsidy drives up the prices of other agricultural goods such as wheat and substantially raises the value of farmland. How would this story change if oil prices were to rise extensively at the same time? if oil prices were to fall? Trace these changes on the economy using supply and demand curves.
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