How Are the Following Events Likely to Affect the Market

question 74

Essay

How are the following events likely to affect the market supply of rice in an economy?
a)A fall in the wage rate of farm labor
b)An increase in the productivity of farm capital due to better technology
c)An increase in the use of agricultural land for non-agricultural purposes

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, representing the cumulative wear and tear or obsolescence of the asset.

Contra

Contra refers to an account that is used to reduce another account on the financial statements to its net value.

Plant Asset

Long-term tangible assets used in the operation of a business and not intended for resale, such as machinery, buildings, and vehicles.

Loss

The negative result when expenses exceed revenues during a specific period.