If a Higher Price for Wheat Decreases the Quantity of Corn

question 49

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

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Definitions:

Income Tax Expense

The amount of money that a company is required to pay in taxes based on its taxable income.

Depreciation Expense

The method of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Operating Income

Earnings before interest and taxes (EBIT), calculated as gross profit minus all operating expenses, including depreciation and amortization.

Investments

Financial assets purchased with the aim of generating income or appreciation in value over time.