Suppose There Is a Simultaneous Increase in the Demand for Wheat

question 396

Multiple Choice

Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?

• A)Both the market clearing price and equilibrium quantity will rise.
• B)The market clearing price will fall, but the equilibrium quantity will rise.
• C)The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise.
• D)The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.

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Definitions:

Compensation Strategy

The design and implementation of pay structures and benefits aimed at achieving an organization’s objectives and attracting, motivating, and retaining employees.

Employee Benefits

Various non-wage compensations provided to employees in addition to their normal wages or salaries, such as health insurance, paid vacations, and retirement plans.

Promotion Criteria

The standards and requirements that an employee must meet or exceed to be considered for advancement within an organization.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and communicating with the board of directors.