Chapter 3 - Assignment 3: Iowa Electronic Markets

Visit the Iowa Electronic Markets homepage appearing in the frame above.
  1. Explain how the political futures market at this site operates.
  2. Will the demand curve for these future contracts be downward sloping? Explain.
  3. What factors will affect the demand and supply of these future contracts? Be specific. Explain how each of these factors will shift demand and/or supply.
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