Which of the Following Would Most Likely Cause the Price

question 204

Multiple Choice

Which of the following would most likely cause the price of wheat to decline?

• A) an increase in the production costs of corn, a substitute for wheat
• B) a decrease in the price of soybeans, a substitute for wheat
• C) an increase in the price of fertilizer, a resource used to produce wheat
• D) a sandwich craze among Americans, causing increased demand for whole-wheat bread

Understand the concept and importance of utility maximization in consumer behavior.

Comprehend the three-step process of technological advancement: invention, innovation, and diffusion.

Analyze how changes in product prices and consumer income affect consumer choices and utility.

Apply economic models to predict changes in technological advancement timeframes.

---

Definitions:

Standard Labour Hours

The number of labor hours predetermined as necessary to complete a job or task under normal conditions.

Actual Labour Hours

The actual amount of labor time spent on a particular job or task, measured in hours.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity of materials that should have been used according to standards.

Standard Quantity

The expected or budgeted quantity of materials, labor, or overheads necessary for producing a unit of production or service under specified conditions.