PPSCFPSCNTSPakistan govt jobs
- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
If both wheat buyers and sellers anticipate a future rise in wheat prices, what effect is expected on the current market equilibrium price and quantity of wheat?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
When both buyers and sellers expect wheat prices to increase, sellers may hold back supply to sell later at higher prices, reducing current supply, while buyers may increase demand to purchase before prices rise. These opposing forces cause the equilibrium price to rise, but the net effect on quantity is uncertain.
More Market MCQs
Practice related questions from the same subject.
- 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?