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The hypothetical country of Marsistan produces marston, an input in the energy production process used by Marsistan and all of Marsistan's neighboring countries. Suppose that

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The hypothetical country of Marsistan produces marston, an input in the energy production process used by Marsistan and all of Marsistan's neighboring countries. Suppose that Venustan, Marsistan's neighboring country, is planning a future attack on Marsistan. Use the graph to illustrate the impact this knowledge will have on the market for futures contracts on marston. Macmillan Learning What information would this movement in the price of 10 marston futures suggest about expectations of future supply and demand movements? Co supply O Price signals are not derived from the CO futures market. O Future supply of marston is expected to decrease. Future supply of marston is expected to increase. Price Future demand for marston is expected to decrease. A N demand 1 2 3 4 5 6 7 8 9 10 Quantity

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