If a Higher Price for Wheat Decreases the Quantity of Corn

question 28

Multiple Choice

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

• A) The supply of wheat increased and the supply of corn decreased.
• B) The quantity of wheat supplied increased and quantity of corn supplied decreased.
• C) The supply of wheat increased and the quantity of corn supplied decreased
• D) The quantity of wheat supplied increased and the supply of corn decreased.
• E) The supply of wheat decreased and the supply of corn decreased.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation, adjusting net income for changes in accounts receivable, accounts payable, and depreciation to calculate cash flow from operating activities.

Operating Activities

Transactions and other events that enter into the determination of net income, including all activities not classified as investing or financing activities in cash flow analysis.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Investing Activity

Transactions that involve purchasing or selling long-term assets and investments, which are reported in the investing section of a company's cash flow statement.