Question

Under distress sale, what is the relationship between marketed and marketable surplus for a farmer?

A Marketed surplus = Marketable surplus Correct Answer Incorrect Answer
B Marketed surplus > Marketable surplus Correct Answer Incorrect Answer
C Marketed surplus < Marketable surplus Correct Answer Incorrect Answer
D Marketed surplus = 0 Correct Answer Incorrect Answer

Solution

A distressed sale  occurs when a sale must be made under unfavorable conditions for the seller. Therefore, Marketed surplus is more than the Marketable surplus

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