For There to Be Demand for a Good,people Must

question 212

Multiple Choice

For there to be demand for a good,people must

• A)want the good more than they want other goods.
• B)know the prices of all other goods.
• C)feel there are few substitutes for the good.
• D)need the gooD.
• E)be willing and able to buy the good at the market pricE.

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Definitions:

Traded

The act of buying, selling, or exchanging assets, securities, or commodities in financial markets.

Long Hedge

A strategy used to mitigate the risk of price increases in commodities or securities by taking a long position in futures contracts.

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Futures Market

A financial market where participants can buy and sell futures contracts, which are agreements to buy or sell an asset at a future date at a price agreed upon today.