Consider the Market for Wheat

question 75

Multiple Choice

Consider the market for wheat. If there is an improvement in harvesting technology,

• A)there is a movement up along the demand curve.
• B)the supply curve for wheat shifts rightward.
• C)the demand curve for wheat shifts leftward.
• D)the demand curve for wheat shifts rightward.
• E)the equilibrium price rises.

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Definitions:

Refundable Deposit

An amount of money given as security for an item that is intended to be returned, with the promise of repayment.

Marginal Private Cost

The change in a firm's total costs that comes from making one additional unit, considering only private costs without externalities.

Abatement Cost

The cost associated with reducing or eliminating negative environmental impacts, such as pollution.

Transferable Permits

Transferable permits are regulatory instruments that allow the holder to emit a certain amount of pollution or use a certain amount of a resource; they can be bought and sold, creating a market for these permits.