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Unformatted text preview: il, such as Nymex Crude. On the day we checked,
the price was $51.25 a barrel. If you want to check the
future price of oil, go to www.emcp.net/oil_futures or simply click on “Commodity Futures” in the left margin of
your first screen (the screen that shows the current price of
crude oil). On the day we checked, the (expected) future
price of crude oil was $51.35. Notice that the difference
between the current price ($51.25) and the future price
($51.35) is only 10 cents, which means that oil producers
don’t have much incentive (if any at all) to shift oil from
current supply to future supply. 120 Chapter 5 Supply Ricky is thinking of selling
his house. He just heard that the price of
houses is expected to rise three months from
today. Instead of offering to sell his house
today, he waits until three months later. Why
did he wait? Ricky believed the future price
of a house would be higher than the current
price of a house. Notice that we are talking
about a nonperishable good here (houses).
In other words, waiting a few months, or
even a year, to sell a house doesn’t lead to a...
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- Winter '14