If a wheat crop turns out to be unusually large,
A)farmers will likely gain and millers will likely lose.
B)millers will likely gain and farmers will likely lose.
C)both farmers and millers will likely lose.
D)both farmers and millers will likely gain.

Question

Quizplus · Accepted Answer

When a wheat crop is unusually large, the supply of wheat increases, leading to a decrease in wheat prices. Farmers, who sell wheat, will likely earn less per unit, thus losing. Millers, who buy wheat to produce flour and other products, benefit from lower wheat prices, thus gaining.

If a Wheat Crop Turns Out to Be Unusually Large