Speculators Who Think That a War in the Middle East

question 234

Multiple Choice

Speculators who think that a war in the Middle East is likely will:

• A) sell oil futures, pushing up the future price.
• B) buy oil futures, pushing down the future price.
• C) sell oil futures, pushing down the future price.
• D) buy oil futures, pushing up the future price.

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Definitions:

Consumer Surplus

The gap between what consumers are prepared to pay for a product or service and what they end up spending.

Market Price

The current value at which a good or service is bought or sold in the market, typically influenced by the forces of supply and demand.

Maximum Price

A price ceiling, often set by regulatory bodies, above which a particular good or service cannot be sold, intended to protect consumers.

Consumer Surplus

The divergence between the price customers are willing to pay and the price they actually pay for a good or service.