ONLY ANSWER QUESTIONS 55-64 use the information from questions 48-54.

48. The annual harvest of feed corn occurs in October but demand is spread evenly throughout the year. Suppose monthly demand for feed corn has been estimated to be Q_Dt= 90 - 3.1 P_twhere Q_Dtis the demand in month t and P_tis the price in month t. Monthly storage costs, which include a profit to cover the opportunity cost of tying up funds while storing, are estimated to be $0.10 per bushel per month. The price must rise every month to compensate for storage costs. So if the price is P in October, it must be P+$0.10 in November and then P+$0.20 in December and so on through the following September. Plugging the monthly prices into the monthly demand curves and then summing the monthly demand curves determine the annual demand. The Price in October, P, will be the only variable in the Demand function. Assuming corn is not stored beyond one year [or that the quantity of corn stored beyond one year is held constant] and imports and exports are not permitted, the annual demand must equal the annual supply. If the annual supply of feed corn from the October harvest is forecast to be 900 bushels, what will be the price of feed corn when the harvest is completed in early October? Write the answer in dollars and round off to one cent.

Answer: $4.14

49. With reference to question 48, what price is forecast for March? Write the price in dollars and round-off to one cent, for example write $3.45 or $4.42.

Answer: $4.64

50. With reference to question 48, what price is forecast for July?

Answer: $5.04

51. With reference to the previous questions, what is the forecast for the quantity demanded for the month of December? Write the quantity and round-off to two decimal places, for example write34.76 or 52.17.

Answer: $76.12

52. With reference to the previous questions, what is the forecast for the quantity demanded for the month of August? Write the quantity and round-off to two decimal places, for example write34.76 or 52.17.

Answer:

I ONLY NEED ANSWERS FOR QUESTIONS 55-64 Please ensure final answers are marked clearly

55. Assuming no change to demand, if the annual supply of feed corn from the October harvest is forecast to be 960 bushels, what will be the price of feed corn when the harvest is completed in early October? Write the answer in dollars and round off to one cent, for example write $3.45 or $4.42.

56. With reference to question 55, what price is forecast for February?

57. With reference to question 55, what price is forecast for June?

58. With reference to questions 55 through 57, what is the forecast for the quantity demanded for the month of January?

59. With reference to questions 55 through 58, what is the forecast for the quantity demanded for the month of July?

60. Suppose the harvest was forecast to be 900 bushels and the increase to 960 was due to unexpected favorable weather, or a supply shock.With the different prices and quantities you calculated for the month of October, what is the elasticity of demand for feed corn in October using the midpoint method?

New and Revised Information for Questions 61 through 51

61.Suppose now that the annual supply of feed corn from the October harvest is forecast to again be 900 bushels.But now, reflecting the fact that there is greater demand for feed corn in the colder months, there is a seasonal pattern to demand as shown below in the monthly demand curves.

November, December, January, February, and March:Q_D = 120 - 2.4 Price

May, June, July, August, and September:Q_D = 60 - 3.8 Price

April and October:Q_D = 75 - 3.1 Price

What will be the price of feed corn when the harvest is completed in early October?Write the price in dollars and round-off to one cent, for example write $3.15 or $4.42.

Answer: $

62.With reference to question 61, what price is forecast for January?Write the price in dollars and round-off to one cent, for example write $3.15 or $4.42?

Answer:

63.With reference to question 61, what price is forecast for June?Write the price in dollars and round-off to one cent, for example write $3.45 or $4.42?

Answer:

64.With reference to questions 62 through 63, what is the forecast for the quantity demanded for the month of March?Write the quantity and round-off to two decimal places, for example write 34.76 or 52.17.

Answer: