Hypothesis Identification

Essay by candyxss07University, Bachelor'sA, June 2010

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�PAGE � �PAGE �1� Hypothesis Identification


Hypothesis Identification Article Analysis

Hypothesis Identification Article Analysis

The purpose of this paper is to identify and analyze the hypothesis of a peer-reviewed article. After much consideration and deliberation, the article that was chosen to analyze is "Ethanol Demand Growth and Related Impact on Corn and Poultry Markets" from The Journal of American Academy of Business, Cambridge. The article explains the correlation between the corn, ethanol and poultry industries, as well as the effect of the ethanol industry on the corn and poultry industries.

The hypothesis stated in the article entitled "Ethanol Demand Growth and Related Impact on Corn and Poultry Markets," is "The increase in the elasticity of substitution between corn and non-corn inputs in both industries will reduce the effect on poultry prices. This research indicated a long-run need for non-corn input in both industries in order to reduce the effect on the three markets and the rest of the economy," (Kebede, Jolly, & Nguyen, 2009, p.

1). The hypothesis clearly states that the demand and growth of ethanol directly affects the corn and poultry markets.

As the demand for ethanol increases, the demand for corn increases, and thus the price of corn rises. Corn is used in not only ethanol but is consumed in its raw state by consumers as well as being used in many food items across the United States. When the price of corn rises because of the demand for ethanol, the price to make food items such as those with high fructose corn syrup, corn syrup, and corn meal rise as well. As a result, the price increases are passed on to the consumers. As stated in the article, "Fluctuation in corn prices arises from changing production volumes and demand, and...