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Indicate whether the market price of a product will most likely go up or down in the following situations and why:

a) There is a drought in the Midwest (bushel of wheat)
My answer: Go up, becuase the supply is limited

b)Strawberries are in season with a bumber crop
My answer: Go up, there is high demand

c)It's the ski season(price of motel rooms)
My answer: Go down, more people will come so there able to offer discount

d)A nutrition study indicates that red meat should be eaten only in moderation, if it all (price of red meat)
-My answer:Go down, study shows it's not good for you

e)A major corporation announces that it has to borrow money from the government in order to stay in business (price of its stock)
-My answer: Go down

  • Check+Business - ,

    I disagree with your answers to b and c.

  • Check+Business - ,

    B) it will go down, becuase its in season

    C)it will go up, because its in season

  • Check+Business - ,

    Yes. Resorts discount their rooms during low season when they have few customers. During the ski season, though, people will pay high prices because rooms are limited.

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