Refer to the Graph of the Supply and Demand for Agricultural

question 238

Multiple Choice

Refer to the graph of the supply and demand for agricultural products. If point 1 reflects the supply and demand for agricultural products in the U.S. in the 1950s, then which point would best characterize long-run change in the equilibrium for agricultural products since that time?

• A)2
• B)4
• C)7

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, reflected on the left side of an account.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is also used to refer to the provision of resources by a credit provider to a borrower.

Expenses

Costs incurred in the process of earning revenues, generally categorized as operating or non-operating.

Debit

An accounting entry that increases assets or expenses or decreases liabilities, equity, or revenue.