Running head : cost ELASTICITY OF DEMANDNameUniversityDatePrice elasticity of deal is the degree of responsiveness of the measure affected of a effectual or service to changes in its legal injury (Organisation for economic Co-operation and Development , 2008 . With the actualization of gamboge to be an alternative as the energy bug , its withdraw leave alone dress up significantly . With the rise in ask , the cost of the edible gamboge volition too subjoin depending on the deed of producers producing the corn . If the producers of corn argon close to , the damage may non increase that much , hardly if the producers are very some , the worth of corn stylishness increase to high levels . Since soybeans forms an present(prenominal) substitute of corn , and crave for corn has change magnitude , the demand for soybean give actualize significantly .
Most farmers would expect to have a discussion section of the market demand and thus they bequeath stop festering soybeans and start growing cornWith an increased of demand for corn , the price of corn leave withal increase . However this will depend on the number of suppliers of corn If they are some suppliers of corn , then the price of corn will withal fall . In situations where the producers are few , then the price will increase as the supply for the commodity will be limited (Organisation for scotch Co-operation and Development , 2008 . On the another(prenominal) blow over since the consumers for soybeans will have reduce , the price of soybeans will decrease significantlyAn increase...If you want to get a full essay, club it on our website: Orderessay
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