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?A) In neither statement.B) In the second statement.C) In the first statement.D) In both statements.

Question

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?A)  In neither statement.B)  In the second statement.C)  In the first statement.D)  In both statements.

Manmeet Atwal · Accepted Answer

Final Answer : B, Explanation :  The terms demand and supply are being used correctly in the second statement, where it is stated that the price of corn rises and falls in response to changes in supply and demand. This indicates a basic understanding of the relationship between supply, demand, and price in a market.However, in the first statement, it is not clear how the terms demand and supply are being used. It is not stated whether the statement refers to short-term fluctuations in supply and demand or long-term trends, or whether the market for corn is local or global. Without more context, it is difficult to determine whether the terms are being used correctly.

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