When speculators begin to sell futures contracts,suppliers will
A) try to sell more in the spot market.
B) store more of their crop to sell in the future.
C) not have any incentive to change their plans.
D) earn larger profits.

Question

Quizplus · Accepted Answer

When speculators begin to sell futures contracts, it indicates a bearish sentiment in the market. Suppliers, in this case, will try to increase their current supply in the spot market to ensure they can sell it at a profitable price before the market drops further. This behavior is represented by choice A.

When Speculators Begin to Sell Futures Contracts,suppliers Will