Multiple Choice
Consider the global market for barley,an agricultural commodity.Suppose that in August,2014,the equilibrium price and quantity were P = $150 per tonne and Q = 350 million tonnes.In August,2015,the equilibrium price and quantity were P = $168 per tonne and Q = 350 million tonnes.Which of the following is the best possible explanation for this change in market equilibrium?
A) There has been an increase in demand for barley.
B) There has been a decrease in supply of barley.
C) There has been a decrease in demand for barley.
D) There has been a simultaneous decrease in demand and increase in supply of barley.
E) There has been a simultaneous increase in demand and decrease in supply of barley.
Correct Answer:
Verified
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