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

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