How Do Speculators Mitigate Shortfalls in the Equilibriumquantities Traded in Markets

question 72

Multiple Choice

How do speculators mitigate shortfalls in the equilibriumquantities 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.(True Answer
• )Correct

Understand the characteristics and classification of service entities.

Comprehend the concepts of service and merchandising value chains.

Identify and classify costs associated with service entities.

Understand the role and calculation of overhead in service costing.

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Definitions:

Writing Requirement

A legal criterion under certain statutes, such as the Statute of Frauds, that mandates certain contracts must be in written form to be legally enforceable.

Promissory Note

A written promise to pay a specified sum of money to a designated person or entity, at a determinable future time or on demand.

Revolving Line of Credit

A credit arrangement that allows a borrower to use, repay, and re-borrow funds up to a specified credit limit.

Intergovernmental Organization

An entity created by treaty, involving two or more nations, to work on issues of common interest or cooperation.