Question
Suppose the government changed the composition of Type C Gasoline (the one used in automotive vehicles), allowing the increase in the addition of anhydrous alcohol
Suppose the government changed the composition of Type C Gasoline (the one used in automotive vehicles), allowing the increase in the addition of anhydrous alcohol to 28% (before 25%). Considering this, what should happen to the ethanol balance market. For simulation, imagine initial equilibrium price of R$2.50 and 500 million liters/year. Explain. *
Suponha que o governo alterou a composio da Gasolina tipo C (que utilizada nos veculos automotivos), permitindo o aumento na adio lcool anidro para 28% (antes 25%). Considerando isso, o que deve acontecer com o mercado de equilbrio de etanol. Para simulao, imagine preo de equilbrio inicial de R$2,50 e 500 milhes de litros/ano. Explique.
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