Corn prices are up more than 60% over the last seven weeks as the worst drought in more than half a century blankets the corn belt in the Midwest." (News, Cnnmoney.com, August 9, 2012)
Use the demand and supply analysis to explain how higher price of corn impact the market for Ethanol (a motor fuel manufactured from corn and can be used to power the engines of many Automobiles).
(decide which side of the market is affected, demand or supply, and what is the effect on equilibrium price and quantity )