An Increase in the Futures Price of Milk Is an Indication

Multiple Choice

An increase in the futures price of milk is an indication that the:

A) supply of milk will increase in the future.
B) price of milk is expected to rise.
C) opportunity cost of milk is higher today than it will be in the future.
D) price of milk is expected to fall, and hence speculators would prefer to buy it in the future.