Figure 10-9
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Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. Assume the industry initially has supply curve S1 and demand curve D1. If demand shifts to D2, then in the short run price will

Relative prices are an effective way of informing producers of

A) their marginal benefits of production. B) their marginal costs of production. C) both A and B. D) none of the above.

Parties who have bought a futures contract and thereby agreed to ________ (take delivery of) the bonds are said to have taken a ________ position

A) sell; short B) buy; short C) sell; long D) buy; long