On August 10, 2020, a major storm known as a derecho, hit the Midwest US (especially in Iowa, Illinois and Indiana) with straight line winds of up to100 miles per hour. It flattened the corn crop on millions of acres. This is clearly a natural production event that caused growing conditions to change from normal to below-normal.

Also in August, it became clear that the Peoples Republic of China (aka, China) had returned as a major customer of US corn. For political reasons, China had not been purchasing US food products. However, China's own domestic markets have recently not been able to meet growing demands for corn. As a result, the US corn market is being changed by the addition of China as a major buying customer.

Use a standard supply and demand analysis to predict the combined effects of these two events on the US Corn Market.

oWhat is the direction of change for the US Corn Supply curve? Why? What is the independent impact of this supply-side event on the equilibrium price and equilibrium quantity of corn?

oWhat is the direction of change for the US Corn Demand curve? Why? What is the independent impact of this demand-side event on the equilibrium price and equilibrium quantity of corn?

oWhen we account for the effects of the both the supply and demand changes, what are the predicted net effects on the equilibrium price and quantity in the corn market (increase, decrease or indeterminate), and why? Explain your logic completely.