-The Above Figure Shows the Supply and Demand Curves for Rice

question 35

Multiple Choice

-The above figure shows the supply and demand curves for rice in the U.S.and Japan.Assume there is no trade between the two countries.If bad weather causes the supply curves in each country to shift leftward by the same amount,then

• A) the price will increase in both countries.
• B) the price will decrease in both countries.
• C) the change in price cannot be determined.
• D) None of the above.

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Definitions:

Payback Period

The length of time needed to recoup the initial cost of an investment, measuring the time it takes for an investment to become profitable.

Cash Flows

The aggregate quantity of cash and cash-like assets going in and coming out of a firm.

Payback Period

The duration required to recoup the cost of an investment or project.

Cash Inflows

Money received by a company from its various business activities, like sales, investments, and financing.