Article Analysis

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Article Analysis: Consumption Trends in Corn ECO 365 Article Analysis: Consumption Trends in Corn In economics, consumption trends are studied as a means to determine the spending patterns of consumers. Consumption trends provide an indication on the relationship between supply and demand. All goods consumed by the public are affected by supply and demand. This paper will analyze the consumption patterns of corn as it relates to the supply and the demand of the good. The Utility of Corn Utility is defined as “the ability of a good or service to satisfy one or more needs or wants of a consumer” (Utility, 2012, p. 1). Corn is the staple of the world’s food supply. Not only is corn used to feed consumers, corn is also used to feed the animals that people consume. Corn is also an ingredient in medications, thickening agents, oil, alcohol, and glue. Ethanol, an alternative renewable fuel source, is derived from corn. As one can see, the utility of corn is vast as it satisfies many needs of the consumer (Cellania, 2010). Changes in the Demand of Corn According to studies, corn consumption in the first half of the marketing year of 2010-2011 was larger than expected. The reason for the increase in demand of corn was the increase in the production of ethanol fuel. “Corn use for ethanol production during the 2010-11 marketing year that started on September 1, 2010 consumed 4.95 billion bushels, 382 million bushels more than used the year before” (Good & Irwin, 2011, p. 1). If the supply of corn were to stay the same, even though the demand for corn increased, the price of corn would increase drastically. This in turn could raise the price of other goods as corn yields many uses in food and other products used by consumers (Good & Irwin, 2011). Changes in the Supply of Corn One factor in the increase of the supply of corn was the poor

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