What would you expect would happen to wheat prices

Assignment Help Business Economics

Reference no: EM131094654

You’re a commodity trader and you’ve just heard a report that the winter wheat harvest will be 2 billion bushels, a 40 percent jump, rather than an expected 30 percent jump.

a. What would you expect would happen to wheat prices?

A) You would expect wheat prices to decline, since the supply of wheat is greater than expected.

B) You would expect wheat prices to stay the same.

C) You would expect wheat prices to increase, since the supply of wheat is less than expected.

D) You would expect wheat prices to decline, since the supply of wheat is less than expected.

Reference no: EM131094654

Questions Cloud

Why economic growth is good or bad for the environment : Give 3 reasons explaining the differences in growth rate. Discuss 2 ways government can promote economic growth. Give reasons why economic growth is good or bad for the environment?

Using the economics of the firm : Republican presidential candidate Donald Trump is a multi-billionaire who claims that, if elected, he would run the country like a business firm. Using the economics of the firm, explain why this may not be so.

Determine the benefit-cost ratio for project : A DOT is performing a benefit-cost analysis of a new highway using an analysis period of 40 years as part the required environmental impact assessment of the project. The section of highway is estimated to have a construction cost $260 million dollar..

Which environment macro-environmental forces : Using the PESTEL method analyze/illustrate why The American Tobacco Company is no longer in the Dow Jones Industrial Average. In other words, which environment macro-environmental forces did it not adjust to in the years since? Discuss how the forces..

What would you expect would happen to wheat prices : You’re a commodity trader and you’ve just heard a report that the winter wheat harvest will be 2 billion bushels, a 40 percent jump, rather than an expected 30 percent jump. What would you expect would happen to wheat prices?

Identified three tasks any collusive arrangement : In the lectures videos, we identified three tasks any collusive arrangement or cartel would need to accomplish if they were going to be successful in raising price above the competitive level for an extended period of time.

New tax is placed on the firms selling sugary drinks : Suppose a new tax is placed on the firms selling sugary drinks. What is the likely impact on prices of sugary drin

Law of marginal returns or the law of increasing costs : Another important law in economics is the “law of marginal returns or the law of increasing costs". Discuss in terms of your study in this course, how might you know that you are at a point of diminishing returns, or where more study will not benefit..

Consider an individual with atypical preferences : Between Periods 1 and 2, Lifesavers became more expensive, and Reeses became cheaper. For a typical student, what happens to the cost of maintaining a particular standard of living between Periods 1 and 2? Now consider an individual with atypical pre..

User Account

All Pages