It is rare that U.S. corn supplies build in a marketing year while soybean supplies slip, but that is exactly what is happening in 2023-24, keeping soybean prices relatively elevated versus corn." It then goes on to discuss how U.S. corn and soybean crops tend to experience similar weather conditions every year, which typically results in corn and soybean supply curves moving in the same direction. However, this past year the two diverged from each other due to the fact that an unusually large number of acres were planted with corn last year (2022).

You should assume that:

• the fixed quantity of available farmland can be used either for corn or for soybeans;
• farmers choose which crop to plant based on their expectations of the market prices at harvest time; and
• both markets are perfectly competitive.

\"The U.S. Department of Agriculture pegs total U.S. corn supplies in 2023-24 to rise 10% on the year. while soybean inventory is seen shrinking 3%.\" Suppose that due to past conditions. the supply of corn is expected to be high and the supply of soybeans is expected to be low. a] Briey explain why high supply conditions in an industry might lead the typical rm {i.e.. farm] to experience low prots in the short run. while low supply conditions in an industry might lead the typical rm to experience high prots in the short run. Your response may include an optional diagram. {10 points} Using side-by-side diagrams with market on the left and individual rm on the right, illustrate the following short-run equilibria (SREsJ in the two markets under the market conditions described in the introduction lie. in 2023]: b} An SRE in the market for corn where a typical rm earns negative economic prot. You should provide a side-by-side diagram in your response to part {b} that illustrates the market for corn and a typical rm that produces com. {15 points] c} An SRE in the market for soybeans where a typical rm earns positive economic prot. You should provide a side-by-side diagram in your response to part [cl that illustrates the market for soybeans and a typical rm that produces soybeans. [15 points) Do not attempt to illustrate parts lb} and [c] using the same diagram. Produce two separate sets of graphs and label them appropriately l["i.e. "Corn\" and rSoybeans"). In each set of side- by-side diagrams, clearly show and label the market equilibrium price and equilibrium quantity. individual rm quantity, the price faced by the individual rm. and the prot earned by the rm. Assume all rms continue to operate (Le. no shutdown). Your graphs should incorporate all cost curves required for you to effectively respond to the question prompt. Use subscript D to identify the relevant curves and points in this question {for example, by labeling your supply and demand as 50 and Do respectively}