Someone who sells commodity futures is A) hedging. B) ...

[c0205847]

Someone who sells commodity futures is
 
  A) hedging.
  B) purchasing risk.
  C) selling risk.
  D) simultaneously purchasing and selling risk.
  E) not necessarily doing any of the above.

Question 2

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will
 
  A) rise.
  B) fall.
  C) remain the same.
  D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

[reelove4eva]

Answer to Question 1

E

Answer to Question 2

D