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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