Interpret the Following Statement: "An Increase in the Price of Wheat

question 4

Multiple Choice

Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."

• A) The statement is correct.
• B) The statement would be correct if "quantity of wheat demanded" were substituted for "quantity of wheat supplied."
• C) The statement is incorrect because it confuses a change in quantity supplied with a change in supply.
• D) The statement would be correct if it read that a "decrease in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."