Which of the Following Results from a Price Ceiling

question 178

Multiple Choice

Which of the following results from a price ceiling?
i.increased search activity
ii.surplus
iii.black market

• A) i only
• B) i and iii
• C) ii and iii
• D) i, ii, and iii
• E) ii only

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Definitions:

Economic Exposure

Long-term financial risk arising from permanent changes in prices or other economic fundamentals.

Cross-Hedging

Hedging an asset with contracts written on a closely related, but not identical, asset.

Basis Risk

Risk that futures prices will not move directly with the cash price hedged.

May Coffee Futures

Contracts for the future delivery of coffee that are due in May, used for hedging and speculative purposes in the commodities market.