Question

2. Demand surplus will impact the commodity market as follows:

a. Both prices and quantity of demand and supply equals

b. Production and market price levels are spontaneous

c. Inadequate needs of consumers and uncompetitive prices

d. Inadequate needs of consumers and threatening by new entrances

Answer 1

2. d) Inadequate needs of consumers and threatening by new entrances.

There is an increased demand by the consumers and hence there is a chance of entry by new firms in order to fill up this demand gap.