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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

Correct Answer:

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