Buyers Scrambled to Secure Stocks of Australian Wool Following a Forecast

question 172

Multiple Choice

Buyers scrambled to secure stocks of Australian wool following a forecast of an 11 percent decline in wool production.What happens in the Australian wool market as a result of this announcement?

• A)The demand curve for Australian wool shifts to the left in anticipation of higher prices in the future.
• B)The demand curve for Australian wool shifts to the right in anticipation of higher prices in the future.
• C)The quantity of Australian wool demanded increases in anticipation of higher prices in the future.
• D)The quantity of Australian wool demanded decreases in anticipation of lower quantities in the future.

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Definitions:

False Positives

Instances in which a test incorrectly indicates the presence of a condition or attribute.

Critical Thinking

The process of purposeful, reflective judgment. Critical thinking manifests itself in giving reasoned and fair-minded consideration to evidence, conceptualizations, methods, contexts, and standards in order to decide what to believe or what to do.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Evidence

Information or facts that are used to support the validity of a statement or argument.