Stabilizing commodity prices around long-term trends tends to benefit importers at the expense of exporters in markets characterized by:
A) Demand-side disturbances
B) Supply-side disturbances
C) Demand-side and supply-side disturbances
D) None of the above

Question

Quizplus · Accepted Answer

Stabilizing commodity prices around long-term trends tends to benefit importers at the expense of exporters in markets characterized by demand-side disturbances. This is because demand-side disturbances are more likely to cause short-term fluctuations in prices, which can be smoothed out by stabilization policies. This benefits importers, who can take advantage of lower prices during periods of low demand, and exporters, who can avoid the negative effects of lower prices during periods of high demand.

Stabilizing Commodity Prices Around Long-Term Trends Tends to Benefit Importers