If Both Buyers and Sellers Expect the Price of a Commodity

question 81

Multiple Choice

If both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________.

• A) will fall, cannot be predicted
• B) will rise, cannot be predicted
• C) cannot be predicted, will fall
• D) cannot be predicted, will rise

---

Definitions:

Physiological Needs

Basic physical requirements essential to human survival, such as air, water, food, shelter, and sleep, posited by Maslow as the foundation of his hierarchy of needs.

Modern Conveniences

Technologies, devices, or services that simplify tasks and make daily life easier compared to past times.

Fulfillment

The achievement of something desired, promised, or predicted, or a sense of happiness or satisfaction resulting from achieving one's potential or realizing one's desires.

Self-Actualize

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.