If the Money Price of Wheat Increases and No Other

question 72

Multiple Choice

If the money price of wheat increases and no other prices change, the

• A) demand for wheat increases.
• B) relative price of wheat is unaffected.
• C) opportunity cost of wheat rises.
• D) relative price of wheat falls.

---

Definitions:

Investment

A placement of capital in expectation of deriving income or profit.

Return on Investment

A measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.

Deferred Tax Liability

A tax obligation owed by an entity in the future due to temporary differences between the book value of assets and liabilities and their tax value.

Income Tax Expense

The expense reported on the income statement that represents the amount of income tax a company owes to governmental authorities.