If cash corn is trading at 4.70 per bushel and the near-term fu... | Filo
If cash corn is trading at 4.70 per bushel and the near-term fu... | Filo
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Suppose that at the beginning of a year, the price of corn is 3.80 per bushel, and 14 billion bushels are harvested. There are approximately 400,000 corn farmers, so the average output per farmer is about 350,000 bushels. The following graphs assume that the market for corn is initially in long-run equilibrium. Favorable weather during the year increases the total corn harvest to 16 billion bushels. Assume that no other factors affect the market for cor n. GRAPH CAN'T COPY a. What percentage of
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