7. Sorghum is harvested in November. Part of the cost of storing sorghum is the interest one...

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7. Sorghum is harvested in November. Part of the cost of storing sorghum is the interest one could have made by investing the money paid for storage cost. For example, if one pays $2,000 in storage costs and the bank offers a 5% interest rate on certificate of deposits, by paying the storage cost one forgoes the $2,000 x 0.05 = $100 that one could have earned. If interest rates fall, what should happen to the price difference for sorghum in April and May?

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