Which of the Following Are Reasons Why Commodities May Have

question 63

Multiple Choice

Which of the following are reasons why commodities may have a negative basis?
I. storage costs
II. seasonal price fluctuations
III. transportation costs
IV. interest costs

• A)I only
• B)IV only
• C)I and III only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Japanese Imports

Goods or services brought into another country from Japan for commercial purposes or consumption.

U.S. Producers

Refers to individuals or companies within the United States that manufacture or supply goods and services.

Tariff

A tax imposed on imported goods and services to raise their price and protect domestic industries.

Total Surplus

Total surplus is the sum of consumer surplus and producer surplus in a market, representing the total benefits to society from trading goods and services.