An externality is an example of a market failure

The existence of counterparty risk

A) has no effect on the contracting parties. B) is disallowed under current government regulations. C) results in information costs for buyers and sellers when analyzing the potential creditworthiness of potential trading partners. D) reduces the risk introduced by forward contracts.

Today's supply curve for iPods could shift in response to a change in

a. today's price of iPods. b. the expected future price of iPods. c. the number of buyers of iPods. d. All of the above are correct.