--%>
Assignment Help - homework help

Surpluses drive prices up- shortages drive price down

Assume, in the Kansas City grain market, total demands for wheat and the net supply of wheat per month are illustrates here:

2040_Table for wheat.png

Why will $3.40 in this market not be the equilibrium price?  Why not $4.90? “Surpluses drive prices up; shortages drive them down.”  Do you agree?

Data from top to bottom:  -13; -7; 0; +7; +14; and +21.

   Related Questions in Finance Basics

  • Q : Describe the bird in the hand theory of

    Describe the bird in the hand theory of cash dividends. The bird in the hand dividends theory says that dividends attained now are better than a promise of future dividends. Uncertainty is resolved while a dividend is paid.

    		•
  • Q : Compare and contrast the potential

    Normal 0 false false

  • Q : Rate of inflation Normal 0 false false

    Normal 0 false false

    		•
  • Q : Working capital what are the advantages

    what are the advantages and disadvantages of working capital source of finance

    		•
  • Q : What is Feasibility Study Report

    Feasibility Study Report (FSR): This is a document proposing an information technology project which contains analyses of options, cost estimates, and some other information.

    		•
  • Q : Explain Year of Budget Year of Budget

    Year of Budget (YOB): In this the fiscal year revenues and expenses are recognized. For revenues, this is usually the fiscal year whenever revenues are earned. For expenses, this is usually the fiscal year whenever obligations, compri

    		•
  • Q : What is Unanticipated Cost or Funding

    Unanticipated Cost or Funding Shortage: A lack or scarcity of (a) cash in a fund, (b) expenses authority due to an inadequate appropriation, or (c) expenses authority due to a cash problem (example, reimbursements not received on a timely base).

    		•
  • Q : Methods to determine Promotional Budget

    What are the methods to determine Promotional Budget? Explain in brief.

    		•
  • Q : Why is replacement value of assets

    Why is the replacement value of assets method not used generally to value complete businesses?The replacement value of assets method is not frequently applied to complete business valuations since it is frequently very hard to locate similar ass

    		•
  • Q : Explain Proposed New Positions Proposed

    Proposed New Positions: It is a request for an authorization to use up funds to use additional people to execute work. Proposed new positions might be for limited time periods (that is, limited term) and for full or less than full tim

    		•