You Notice That the Price and Quantity of Wheat Both

question 214

Multiple Choice

You notice that the price and quantity of wheat both decrease. This observation can be the result of the

• A) demand curve for wheat shifting rightward.
• B) demand curve for wheat shifting leftward.
• C) supply curve of wheat shifting rightward.
• D) supply curve of wheat shifting leftward.

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Definitions:

Market Price

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including opportunity costs.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Market Price

The price at which goods are bought and sold in a competitive marketplace, constantly influenced by supply and demand.