How Do Speculators Mitigate Shortfalls in the Equilibrium Quantities Traded

question 67

Multiple Choice

How do speculators mitigate shortfalls in the equilibrium quantities traded in markets?

• A) by buying up unsold inventories and then selling them when there is a shortage in the market
• B) by causing market quantities to rise and fall
• C) by buying up items when the prices have risen
• D) by buying up items in advance of rising prices, and then selling them in the market when prices increase

---

Definitions:

Opportunity Cost

Letting go of potential advantages from other choices when one is firmly selected.

Scenario 1-5

Hypothetical situations used for planning and analysis that represent a range, from optimistic to pessimistic forecasts.

Movies

Visual entertainment media that often tell a story or convey messages through a sequence of moving images.

Incremental Adjustment

A process of making small modifications or changes in order to improve or correct a system, often used to fine-tune economic policies or strategies.