In Agriculture,a "Bumper Crop" Refers to a Particularly Productive Harvest

question 159

Multiple Choice

In agriculture,a "bumper crop" refers to a particularly productive harvest.If there is a bumper crop for wheat at the same time that more people become allergic to wheat and all else is held constant,what will happen to the equilibrium price and quantity for wheat?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• C) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

IRR Method

The Internal Rate of Return method, a capital budgeting technique used to evaluate and compare the profitability of investments or projects.

Hurdle Rate

The minimum rate of return on an investment required by a manager or investor.

Capital-Budgeting

The process that a company undergoes to evaluate potential major projects or investments, such as new machinery or expansion plans.

Risk-Free Rate

The expected yield from an investment that carries no risk of losing money, often shown through the interest rates of government securities.