Which One of the Following Is Not Generally Considered a Benefit

question 11

Multiple Choice

Which one of the following is not generally considered a benefit of hedging?

• A) Hedging reduces business risk.
• B) Hedging allows prices to be locked in ahead of time.
• C) Hedging can be very profitable.
• D) Hedging can stabilize profits.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a particular period of time.

Price

The amount of money expected, required, or given in payment for something, often determined by the conditions of demand and supply.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Knee Braces

Supportive devices worn to protect or assist the knees, often used after injuries or for preventive measures in sports.