The above figure shows the market for pizza. The market is in equilibrium when the wages paid pizza workers increases. What point represents the most likely new price and quantity?

In which of the following situations would you hedge using a futures contract?

A. You are long in the cash market, the price is at a historical high, and you are certain that the price will decline. B. You are long in the cash market, the price is at a historical low, and you are certain that the price will increase. C. You are short in the cash market, the price is at a historical high, and you are certain that the price will decrease. D. You are short in the cash market, the price is at a historical low, and you are certain that the price will decrease further.

"Price elasticity measures how many more units of a good that consumers will buy given a decrease in price." Do you agree or disagree? Explain

What will be an ideal response?