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The following equation represents the total demand for U.S. corn: Q= 2954 – 235 P whereas...

The following equation represents the total demand for U.S. corn: Q= 2954 – 235 P whereas the following represents the domestic supply of corn in the U.S. : Qs= 1976 + 189 P. A drought in corn-producing countries created an additional demand for U.S. corn for 169 bushels. a. Calculate the market-clearing price for corn, for the new total demand. What will the quantity produced and sold of corn be in the U.S. market? b. Show your results in a supply-demand diagram. c. At the market equilibrium, what side of the market, supply or demand, is more elastic? d. Why is it important to know about elasticity in a market?

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