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Answer True or False or Uncertain. And explain the reason for your answers in several sentences. 1. A processor who went short in the futures

Answer True or False or Uncertain. And explain the reason for your answers in several sentences.

1. A processor who went short in the futures market in the same commodity she was processing in her factory would be speculating, and find herself unaffected by a change in the basis.

2. When India imposed a tariff on the import of Canada's lentils, it is possible and can be shown with our rural-urban market model that lentil farmers in the central regions of India may be unaffected by this tariff measure (i.e., see no price increase for their domestic product).

3. Tighter restrictions on worker safety, such as wider spacing of workers in processing lines, at beef and hog processing plants in Canada and the US due to COVID will hurt both farmers and consumers by raising those meat prices to consumers and lowering them to hog and beef farmers.

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