Question: In each of the following examples, discuss which market model appears to best explain the behavior described:

a. Corn prices reached record highs in the United States in August 2012, given the worst drought in decades. However, by October these prices started to drop again as countries including China, Japan, and South Korea began to purchase from producers in other countries such as Argentina and Brazil.

b. In 2012, Staples Inc., Office Max Inc., and Office Depot Inc. were all closing many stores, decreasing the size of their stores, and focusing more on online operations. All three chains struggled to deal with changing consumer shopping habits as consumers tested equipment in the stores and then made them purchase online.

c. In fall 2012, T-Mobile announced it was close to a merger with its smaller rival MetroPCS. This merger would strengthen T-Mobile's position as the fourth-largest wireless operator in the United States. The merger would allow the combined company to cut costs and operate on a larger scale.