Can speculators who expect prices to rise actually cause those prices to rise in the short run?
A) Yes, if they buy up enough of the good, they will increase demand and thus raise the price of the product.
B) Yes, if they expect the price to rise, sellers will automatically raise prices for their products.
C) No, because speculators do not have enough power to cause an increase in demand.
D) No, because speculators' actions cannot influence a market equilibrium.
Correct Answer:
Verified
Q107: When the price of a good rises:
A)
Q108: Failing to understand the signaling role of
Q109: A United States. manufacturer arranges to purchase
Q110: After a hurricane knocks out power to
Q111: A person who tries to profit by
Q113: The high prices for ice in hurricane-devastated
Q114: How do speculators mitigate shortfalls in the
Q115: Increasing prices act as a signal to:
A)
Q116: Suppose that a hurricane hits both North
Q117: All relevant information about the use of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents