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 prospective sellers than buyers, there is a surplus of supply in the market. In order to sell their corn futures, sellers will have to lower their prices to attract buyers. This increased supply and decreased demand will lead to a decrease in the price of corn futures.

If the Market for Corn Futures Has More Prospective Sellers