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Question: us calendar year average corn price received for the 20082015...

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US Calendar Year Average Corn Price Received for the 2008-2015 Calendar Year(s) Corn (S/bushel) 4.78 3.75 Year 2008 2009 2010 2011 2012 2013 2014 2015 83 6.01 6.67 6.15 Source: http/ljan mannlib cornell edu/reports/nassr/price/pap-bb/ Table 1. US Corn Prices Received 2008 2015 2. According to the information in Table 1, prices paid to U.S. corn farmers increased from $3.75 per bushel in 2009 to $6.67 per bushel in 2012, then dropped back to $4.11 in 2014. Refer to Essential Economic Concepts Part 1, slides 32 40. (20 points; 10 points each for a and b) a) Based on theories of supply and demand, explain how corn farmers (suppliers) reacted to the increase in corn prices? To the subsequent decrease in corn prices? Explain your answers. b) Based on theories of supply and demand, explain how livestock farmers (buyers) reacted to the increase in corn prices? To the subsequent decrease in corn prices? Explain your answer.
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