# Calculate the equilibrium price and quantity that will prevail under a completely free market. Calculate the price elasticities of supply and demand…

A. Calculate the equilibrium price and quantity that will prevail under a completely free market. B. Calculate the price elasticities of supply and demand at the equilibrium values. C. The government currently has a price support of \$5 per bushel in place. What impact will this price support have on the market? Will the government be forced to purchase corn under a program that requires them to buy up any surpluses? If so, how much? D. Suppose the government demands that all gasoline contain at least 10% ethanol and it causes demand to double at any given price. Suppose a drought occurs as well and causes supply to decrease by 50 units at any given price. What is the new equilibrium price and quantity? E. Using the events from part (d), explain the effects in the markets for corn detasselers and soybeans. Problem 2 Suppose the demand curve for a product is given by Q=10-2P+PS, where P is the price of the price of the product and PS is the price of a substitute good. The pric