Assuming That Soybeans and Tobacco Can Both Be Grown on the Same

question 142

Multiple Choice

Assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n) :

• A) rightward shift of the supply curve for tobacco.
• B) upward movement along the supply curve for soybeans.
• C) rightward shift in the supply curve for soybeans.
• D) leftward shift in the supply curve for soybeans.

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Definitions:

Capital Stock

The total amount of a company's stock (both preferred and common) authorized for issuance, representing ownership in the company.

Preferred Stock

A class of stock that typically offers dividends and claim on assets before common stockholders but usually does not have voting rights.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.

Capital Stock

The total amount of shares that a company is authorized to issue, representing the main source of equity for the company.