Consider the Global Market for Barley,an Agricultural Commodity

question 122

Multiple Choice

Consider the global market for barley,an agricultural commodity.Suppose that in August,2018,the equilibrium price and quantity were P = $150 per tonne and Q = 350 million tonnes.In August,2019,the equilibrium price and quantity were P = $168 per tonne and Q = 350 million tonnes.Which of the following is the best possible explanation for this change in market equilibrium?

• A)There has been an increase in demand for barley.
• B)There has been a decrease in supply of barley.
• C)There has been a decrease in demand for barley.
• D)There has been a simultaneous decrease in demand and increase in supply of barley.
• E)There has been a simultaneous increase in demand and decrease in supply of barley.

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Definitions:

Assignor

A person or entity who transfers obligations along with rights to another party in the context of a legal agreement.

Assignee

A person, company, or entity who is transferred the rights or interests of another's contract or property.

Privity of Contract

A legal principle that asserts a contract cannot bestow rights or impose obligations on any person who is not a party to the contract.

Intended Beneficiary

A third party to a contract whom the contracting parties intended to benefit directly from their contact.