If the market for corn futures has more prospective sellers than buyers, then one would expect:
A) the price of corn futures to decrease.
B) the price of corn futures to increase.
C) some traders to change from seller to buyer.
D)the market to cease operations until demand is rebalanced.

Question

Quizplus · Accepted Answer

When there are more sellers than buyers in a market, it creates an oversupply of the commodity being traded. This oversupply leads to a decrease in price as sellers try to attract buyers with lower prices. Therefore, the price of corn futures would be expected to decrease if there are more prospective sellers than buyers.

If the Market for Corn Futures Has More Prospective Sellers