Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. What number below most closely approximates your income elasticity over this range?

Which statement best describes who benefits from basis strengthening over a hedge with a futures contract?

A. Buyers gain, sellers lose B. Buyers lose, sellers gain C. Both gain D. Neither gains or loses since they have offset their basis risk by hedging

An increase in the number of producers will:

a. increase the market supply, because the price will rise. b. increase the market supply only when market demand increases too. c. increase the market supply, because market supply is the sum of all individual supply curves. d. increase the market supply only if each supplier has an identical supply curve. e. decrease the market supply, because firms compete with each other and each firm will supply more.