Other Things Constant, If Wheat Production Is a Price-Taker Industry

question 303

Multiple Choice

Other things constant, if wheat production is a price-taker industry, a decrease in the price of fertilizer used to grow wheat will

• A) increase the supply of wheat.
• B) increase the demand for wheat.
• C) decrease the supply of wheat.
• D) do both a and b.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Transactions

Financial activities that involve the exchange of assets, services, or liabilities between two parties.

Ledger

An accounting book or computer file for recording and totaling economic transactions measured in terms of a monetary unit and categorized by account type.

Account Titles

Names given to the accounts that reflect the types of transactions they represent, used in bookkeeping to distinguish financial records.