In the corn market demand often exceeds supply and supply so

\"In the corn market, demand often exceeds supply and supply sometimes exceeds demand. The price of com 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? in neither statement in the second statement in the first statement in both statements

Solution

Demand and supply is correctly used only in second statement.

Changes in demand and supply imply shifts of demand and supply curves which causes change in price of corn.Hence second statement is true.

We can\'t relate demand and supply like it has done in first statement.We can relate quantity demanded and quantity supplied.

So correct option is B.