If a Technological Advance Makes It Possible to Produce Bananas

question 86

Multiple Choice

If a technological advance makes it possible to produce bananas at a lower cost:

• A) the supply of bananas decreases.
• B) the supply of bananas increases.
• C) the demand for bananas increases.
• D) the demand for bananas decreases.

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Definitions:

Initial Cash Balance

The amount of cash available in a company or individual's account at the start of a period.

Optimum

The most favorable condition or level for growth, reproduction, or success.

Holding Cash

The act of retaining liquid currency or cash equivalents by individuals or firms as a part of their financial strategy, to cover expenses or for speculative purposes.

Interest Rate

The percentage charged or paid for the use of money on a loan or investment, typically expressed as an annual percentage rate (APR).