It is expected that the price of a bushel of wheat will increase in one month. Thisbelief will result inA) an increase in the current supply of wheat.B) a decrease in the current supply of wheat.C)a decrease in the future supply of wheat.D) no change in the current or future supply of wheat.E) an increase in the current quantity supplied of wheat.

Answered: It is expected that the price of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

100%

It is expected that the price of a bushel of wheat will increase in one month. This
belief will result in
A) an increase in the current supply of wheat.
B) a decrease in the current supply of wheat.
C)
a decrease in the future supply of wheat.
D) no change in the current or future supply of wheat.
E) an increase in the current quantity supplied of wheat.

Expert Solution

Step 1

Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is an inverse relationship between quantity demanded and price, which means if the price of a good increases then the quantity demanded decreases and if the price of a good decreases then the quantity demanded increases.

Supply: - Supply is the relationship between the quantity supplied and the price of a good. There is a direct relationship between the quantity supplied and the price of normal goods which means if the price increases quantity supplied increases and if the price decreases the quantity supplied also decreases.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions