A potato farmer who signs a futures contract is
A) speculating on the future price of potatoes,hoping it will be higher.
B) speculating on the future price of potatoes,hoping it will be lower.
C) eliminating his exposure to risk from a falling potato price.
D) trying to influence the price of potatoes to rise.
Correct Answer:
Verified
Q95: Assume that the farmers know that their
Q96: Exhibit 39-5 Q97: Exhibit 39-4 Q98: Exhibit 39-4 Q99: If the government attempts to aid farmers Q101: An agricultural price support Q102: Suppose farmers agree to reduce their supply Q103: Suppose the demand curve for corn is Q104: If the demand for foodstuffs is inelastic,which Q105: Farmers can insure themselves against adverse price Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)will create a surplus
