The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A) buying long.
B) selling short.
C) a tariff.
D) arbitrage.

Question

Quizplus · Accepted Answer

The act described in the question is known as arbitrage, where an individual takes advantage of price discrepancies between markets. Buying long refers to a position that profits from an increase in price, while selling short refers to a position that profits from a decrease in price. A tariff is a tax on imported or exported goods, which is not related to the act of buying and selling commodities for profit.

The Act of Buying a Commodity in One Market at a Lower