Wheat Is the Main Input in the Production of Flour

question 70

Multiple Choice

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

• A)demand for flour to increase.
• B)demand for flour to decrease.
• C)supply of flour to increase.
• D)supply of flour to decrease.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial data over a sequence of reporting periods, using a base period to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure, facilitating comparisons.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at different points in time, side-by-side, to facilitate comparison.

Plant Assets

Tangible resources that are used in the operations of the business and are not intended for sale to customers.