The Demand for Soybeans in a Country Is Given by D

question 93

Multiple Choice

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1 + 0.8P.Both demand (D) and supply (S) of soybeans are measured in millions of bushels.If the world price of soybeans equals $5 and this economy is open to trade,then this country will

• A) export 1 million bushels of soybeans.
• B) export 2 million bushels of soybeans.
• C) neither import nor export soybeans.
• D) import 1 million bushels of soybeans.
• E) import 2 million bushels of soybeans.

---

Definitions:

Net Present Value

Calculating the variance between the present-day value of cash flows in and out over an established timeframe.

Average Accounting Return

The ratio of average net income to average invested capital, often used in financial analysis to assess investment attractiveness.

Profitability Index

A financial metric that calculates the ratio of the present value of future cash flows from an investment to the initial investment cost, used to evaluate the desirability of projects.

Present Value

Present value refers to the current value of a future amount of money or series of cash flows, calculated using a specific rate of return.