1. The price of corn in the last year increased from 2.50 dollars per bushel to 4.50 dollars per bushel. You want to explain this increase with a model of demand and supply. In particular you assume that the market demand function of corn satises the law of demand and depends on the average income of the consumers (denote it by I), in the following manner: the partial derivative of quantity demanded respect to the income is always positive (that is Qd = p, I) and g; > 0). Moreover you assume that the market supply function satisfy the law of supply and that depends on the price of the input (denote it by w) in the following manner: the partial derivative of quantity supplied respect to the price of the input is always negative (that is Q3 2 g(p,w) and 3%