I have 8 questions out of 20 I am stuck on... I was hoping I could get some seco

Question

I have 8 questions out of 20 I am stuck on... I was hoping I could get some second opinions, I will post the ones I got simple answers for, detail is also apparently important as each questions would be 6 marks on an test. Thanks!!

Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.

3. In a supply and demand model of the Canadian corn market, the price and quantity of corn are endogenous variables while government ethanol mandates, the local weather during the growing season, and the extent of wild fires affecting Russian wheat production and therefore world-wide wheat prices, are exogenous variables.

This statement is true because the endogenous or dependent variables are in fact price and quantity, and the exogenous or independent variables are also correct.

I don't know how to back that up very well and I am looking for something that might be able to explain and word it properly...

Explanation / Answer

To explain why they are exogenous variables add something like: Government ethanol mandates, the local weather during the growing season, and the extent of wild fires affecting Russian wheat production are not affected by the price of corn, but they do affect it. Therefore they are exogenous, since they are independent of the model.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.