How do speculators mitigate shortfalls in the equilibriumquantities traded in markets?
A)by buying up unsold inventories and then selling them when there is a shortage in the market
B)by causing market quantities to rise and fall
C)by buying up items when the prices have risen
D)by buying up items in advance of rising prices, and then selling them in the market when prices increase.(True Answer
)Correct

Question

Quizplus · Accepted Answer

Speculators mitigate shortfalls by anticipating future price increases, buying items in advance, and selling them when prices rise, thus stabilizing market supply and demand.

How Do Speculators Mitigate Shortfalls in the Equilibriumquantities Traded in Markets