Assume That an Exporter's Supply Curve of a Commodity Is

question 5

Multiple Choice

Assume that an exporter's supply curve of a commodity is upward sloping.If a change in import demands in other countries leads it to increase its exports,other things equal,what would be the impact on the domestic price of the commodity?

• A)The domestic price of the commodity will fall.
• B)The domestic price of the commodity will exceed the price in foreign countries.
• C)The domestic price of the commodity will be below the price in foreign countries.
• D)The domestic price of the commodity will rise.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Order of Liquidity

The arrangement of assets on a balance sheet in order of the time it would typically take to convert them into cash.

IFRS

International Financial Reporting Standards, a set of accounting principles that establish how transactions and other accounting events should be reported in financial statements on a global scale.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties.