Microeconomics: Corn Market Problems

Corn Market Problems Since April on that point have been some major issues with the production in the Corn blame of America. The central and west areas of the Corn Belt are relatively unaffected, provided the north and east areas have seen some major decreases in clavus output due to underweight edible lemon and edible corn diseases. North Dakota, Indiana, Illinois and move of Iowa have seen the most damage, mainly because of molds and mycotoxins. Many fear that this shortfall of corn impart affect the grain trade and the economy as a whole since many of the corn is too damaged to be utilise for feed or energy.Some farmers have experimented with mixing good quality corn with the underweight corn in order to meet the national sample for corn weight, so this may help a little. With a shortage like this, on a product that has so many purposes, it would be hard to find a substitute therefore we can tarry the demand of corn to rise. A rise in demand go forth also lead to a ri se in equipment casualty and a rise in quantity demanded. Farmers pass on strive for maximum strength and cut corners to yield as much corn as possible, moreover the supply still will not be enough.The shortage of corn will cause the supply curve to move 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 pick up up after the north and east ends of the corn belt. The market-equilibrium price will be affected as well. Since there is an obvious shortage and corn suppliers are unable to produce as much corn as normal, the rise in demand and decrease in supply will inevitabley lead to an increase in market price.