--%>
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 : Explain the basic goal of a business

    Normal 0 false false

    		•
  • Q : Describe the primary variables in EOQ

    Describe the primary variables being balanced in the EOQ inventory model? Clarify In the EOQ model the primary variables being balanced are carrying costs and ordering costs. The more frequent orders are placed the lower the firm's carrying co

    		•
  • Q : Explain Appropriation Appropriation :

    Appropriation: The authorization for a particular agency to make expenditures or make obligations from a particular fund for a particular purpose. It is generally limited in amount and period of time during which the expenses is to be

    		•
  • Q : Formula for the payment required for a

    Normal 0 false false

    		•
  • Q : Global Economic Crises during 2007-2008

    Describe Global Economic Crises during 2007-2008 ?

    		•
  • Q : Which ratios would long-term bond

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios. While a business's debt ratios rise sig

    		•
  • Q : How management incorporated in proforma

    Describe how management aims are incorporated into proforma financial statements.Management decide a target goal, and forecasters generate proforma financial statements under the assumption that the goal will be

    		•
  • Q : Summer Co. is expected to pay a

    Summer Co. is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per share. If the required rate of return on the stock is 15% and dividends are growing at a current rate of 10% per year, calculate the present value of the growth opportunity for the stock (PVGO)

    		•
  • Q : What is Personal Services Personal

    Personal Services: It is a category of expenditure that comprises such objects of expenditures as the payment of wages and salaries of state employees and employee advantages, comprising the state's contribution to the Public Employees' Retirement Fun

    		•
  • Q : Explain the term Continuous

    Continuous Appropriation: The constitutional or statutory expenses authorization that is renewed each year without additional legislative action. The amount obtainable might be particular, recurring sum each year; all or a specified part of the procee

    		•