In Recent Years the Cost of Producing Organic Produce in Canada

question 278

Multiple Choice

In recent years the cost of producing organic produce in Canada has decreased largely due to technological advancement.At the same time, more and more Canadians prefer organic produce over conventional produce.Which of the following best explains the effect of these events in the organic produce market?

• A)The supply curve has shifted to the left and the demand curve has shifted to the right.As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
• B)Both the supply and demand curves have shifted to the right.As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
• C)Both the supply and demand curves have shifted to the right.As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
• D)The supply curve has shifted to the left and the demand curve has shifted to the right.As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

Grasp the basic principles and assumptions underlying financial accounting.

Identify the different entities in business and their accounting implications.

Recognize the roles and tasks of regulatory bodies and standards in accounting.

Understand the primary objective of financial accounting and its importance to external users.

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Definitions:

Original Cost

The initial purchase price or construction cost of an asset or investment, not adjusted for inflation, depreciation, or other factors over time.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in an orderly transaction between market participants at the measurement date.

Fair Value

An estimate of the market value of an asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a seller.

Boot

Additional value or cash given along with a trade or exchange to equalize the value between traded items.