Answer to Question #44965 in Microeconomics for Abdulla Sabit
What may happen to the position of the demand curve for rice if market syndication occurs in rice marketing?
A syndicate is a self-organizing group of individuals, companies, corporations or entities formed to transact some specific business, to pursue or promote a shared interest. In most cases formed groups aim to scale up their profits. Although there are many legal syndicates formed around the world, the usage of the term "the syndicate" in colloquial English often refers to one involved in illegal activities. Business syndicate is a formed group of several business entities, like companies or corporations, which share common interest on the market, but usually are not direct competitors. Larger companies or corporations form syndicates to strengthen their position on the market. After syndication the demand curve will shift to the left, so the price will increase and the quantity produced will decrease.