Quizzol

QUESTION:

Suppose both buyers and sellers of corn expect the price of corn to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for corn today?

a. The impact on both price and quantity is ambiguous.

b. Price will increase; quantity will decrease.

c. Price will decrease; quantity is ambiguous.

d. Price will increase; quantity will increase.

e. Price will increase; quantity is ambiguous

ANSWER:

Price will increase; quantity is ambiguous

Posted by Cleveland on August 30, 2024