The Exit of Farms from a Market Should

question 88

Multiple Choice

The exit of farms from a market should

• A)Shift the agricultural market supply curve to the right.
• B)Increase the equilibrium market price.
• C)Decrease the equilibrium market price.
• D)Increase the equilibrium market output.

---

Definitions:

In The Money

A term used in options trading to describe an option that would generate profit if exercised immediately, because the underlying asset's price is favorable to the option's strike price.

Margin Call

A call from a broker to an investor to add more money or securities in order to safeguard against potential losses.

Option Clearing Corporation

An organization that acts as both the issuer and guarantor for option and futures contracts, ensuring the fulfillment of contract obligations.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price before a specified date.