The Figure Below Shows the Demand (D) and Supply (S)

question 119

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Which of the following can be categorized as a commodity money standard?

• A)The pegged exchange rate standard
• B)The free float standard
• C)The managed float standard
• D)The reserve currency standard
• E)The gold standard

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Definitions:

Arbitrage

The simultaneous purchase and sale of an asset in different markets to profit from price differences.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on their willingness to pay.

Arbitrage

The simultaneous buying and selling of assets in different markets to exploit price differences for profit.

Elasticity of Demand

A gauge for the responsiveness of how much a product is wanted relative to fluctuations in its price.