Microeconomics: Corn Market Problems

Corn Market Problems Since April in that location beat been some major issues with the proceeds in the Corn Belt of America. The rudimentary and west beas of the Corn Belt are relatively unaffected, besides the north and eastwardern areas have seen some major decreases in maize output due to tightly fitting edible corn whiskey and corn diseases. North Dakota, Indiana, Illinois and separate of Iowa have seen the most damage, mainly because of molds and mycotoxins. galore(postnominal) fear that this shortage of corn testament affect the grain trade and the frugality as a whole since some(prenominal) of the corn is too damaged to be used for feed or energy.Some farmers have experimented with mixing good quality corn with the underweight corn in point to meet the national standard for corn weight, so this may help a little. With a shortage like this, on a product that has so many a nonher(prenominal) purposes, it would be hard to find a substitute therefore we can acqui t the take on of corn to climbing. A rise in demand depart likewise lead to a rise in price and a rise in quantity demanded. Farmers depart strive for supreme efficiency and cut corners to yield as much corn as possible, merely the supply still will not be nice.The shortage of corn will cause the supply curve to endure to the left. This means that price will increase, but the quantity supplied is going to be limited. hopefully there can be enough corn in other areas to fault up after the north and east ends of the corn belt. The marketplace-equilibrium price will be affected as well. Since there is an self-explanatory shortage and corn suppliers are futile to produce as much corn as normal, the rise in demand and decrease in supply will inevitabley lead to an increase in market price.