Consider the Global Market for Barley,an Agricultural Commodity

question 45

Multiple Choice

Consider the global market for barley,an agricultural commodity.Suppose that in August,2014,the equilibrium price and quantity were P = $150 per tonne and Q = 350 million tonnes.In August,2015,the equilibrium price and quantity were P = $168 per tonne and Q = 290 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 an increase in supply of barley.
• C)There has been a simultaneous increase in demand and increase in supply of barley.
• D)There has been a decrease in supply of barley.

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Definitions:

Prisoner's Dilemma

A game theory scenario demonstrating why two rational individuals might not cooperate even when it appears that it is in their best interest to do so.

Robert Axelrod

A political scientist known for his work on the theory of cooperation and competition, including the development of the iterated prisoner's dilemma model.

Tit-for-tat

A strategy in game theory where a player responds to an opponent's action with equivalent action, promoting cooperation by rewarding cooperation and punishing defection.

Prisoner's Dilemma

A scenario in game theory that illustrates why individuals might not cooperate, even when it seems that doing so would be in their collective best interest.