After an analysis of political currents in central and south america, you conclude that future coffee prices will be lower than currently indicated by futures prices. would you go long or short? analyze the impact of a swing in coffee prices of 10 cents per pound in either direction if you have a 10-contract position, where each contract calls for delivery of 37,500 pounds of coffee.

a. Short futures

b. $37,500

Explanation:

Since the price of the future coffee would be lower than the future prices so it would reflect the short futures, not the long futures

And, the impact would be

= Number of coffee pounds × number of contract position × coffee price per pound in cents

= 37,500 pounds × 10 × 0.10

= $3,7500

We simply multiply the coffee pounds, contract position and per pounds in cents so that the accurate value can come.

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.