Refer to Figure 2.3. At a price of $13 per CD, there would be:
A. excess supply of 30 thousand CDs.
B. excess demand of 10 thousand CDs.
C. excess supply of 60 thousand CDs.
D. excess demand of 60 thousand CDs.
A. excess supply of 30 thousand CDs.
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Rare earth metals are used to manufacture some important electronic components in popular products like cell phones. These metals are not really rare, but they are expensive to extract from the ground
What happens to the market for the rare earth metals if these extraction costs increase? A) Demand curve shifts leftward B) Demand curve shifts rightward C) Supply curve shifts leftward D) Supply curve shifts rightward
In the long run, the number of firms in an industry may change. If the number of firms increases, then
A) the supply curve will shift outward to the right. B) the demand curve will shift outward to the right. C) the supply curve will shift inward to the left. D) the demand curve will shift inward to the left.
The funding of public education is
A) a private program. B) a subsidy program. C) done by voluntary contributions. D) provided by Social Security.
Assume you pay a premium of $0.80/bu for a soybean call option with a strike price of $9.00/bu and that the current futures price is $9.30/bu. What is the option's current intrinsic value?
A. $0.20/bu B. $0.30/bu C. $0.50/bu D. $0.80/bu