In the corn market, demand often exceeds supply and supply sometimes exceeds demand. "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?

Question

Social Studies

Augustus Orr

10 November, 20:42

In the corn market, demand often exceeds supply and supply sometimes exceeds demand. "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?

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Answers (1)

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Kira Macdonald · Answer 1

In both

Explanation:

Assuming a market free of protectionist tariffs, the maize market is determined by the interaction between supply and demand, with price adjustments as its vector. In situations of excess demand, price increases and supply increases. In situations of oversupply, the price falls, raising demand. This is what the two statements explain. In the first it is said that there is excess supply or demand in the corn market. In the second it is said that price changes as a function of changes in supply and demand. In both cases, the simple operation of the law of supply and demand is narrated.