posted by Bryan on .
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
I disagree with your answers to b and c.
B) it will go down, becuase its in season
C)it will go up, because its in season
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.