Which situation below would represent a surplus in the fertilizer market?
A. quantity demanded is 1.2 million; quantity supplied is 1.1 million.
B. market price $2.00 per bag; equilibrium price $2.25 per bag.
C. market price $2.50 per bag; equilibrium price $2.00.
D. quantity supplied this year is 25% greater than quantity supplied last year.
C. market price $2.50 per bag; equilibrium price $2.00.
You might also like to view...
Comment on the following statement: "The market demand for public goods is derived in the same way that the market demand for private goods is derived."
What will be an ideal response?
Which of the following statements about the presence of speculators in futures markets is correct?
A) Their main objective is to reduce their exposure to risk. B) They aid hedgers by increasing the liquidity in futures markets. C) They make it difficult for hedgers to find someone to take the opposite side of their positions. D) Once a futures market participant is known to be a speculator he or she is no longer allowed to participate in the market.