Assume the market price of corn is $3

Subject:EconomicsPrice:2.88 Bought3

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Assume the market price of corn is $3.23/bu. and corn producers produced 2 million bushels of corn. Estimate the current supply elasticity for wheat at e = .1 and the demand elasticity is -.095.

A) A reference price of $4.00 per bushel of corn is used. Treat this reference price as a target price. Assuming the elasticity as stated above, what is the quantity supplied at the new target price? report answer to 4 decimal places

B) Given the new supply at the target price and constant elasticity of demand, what is the new demand price that will clear the market? report to 4 decimal places

C) Given the supply and demand elasticities, does the estimate of deadweight loss make sense economically?