If Both Buyers and Sellers Expect the Price of a Commodity

question 13

Multiple Choice

If both buyers and sellers expect the price of a commodity to rise 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

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Definitions:

American West

The region of the United States located west of the Mississippi River, historically significant for its development and expansion during the 19th century.

Nonfarm Activities

Economic activities that do not involve agriculture, farming, or animal husbandry, typically in sectors like manufacturing, services, and technology.

Americans

Citizens of the United States or people living within its boundaries; also can refer to the broader identities and cultures within the United States.