Which of the Following Would Cause an Increase in Quantity

question 14

Multiple Choice

Which of the following would cause an increase in quantity of wheat supplied?

• A)The price farmers receive for their wheat rises
• B)The price of fertilizer farmers use in their fields falls
• C)The price firms pay for liability insurance falls
• D)New, better technology for farming is introduced

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Definitions:

Interest Rate

An interest rate is the percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Strip Bond

A debt security that is derived from the coupon and principal payments of a bond, which are separated ("stripped") and sold as individual zero-coupon bonds.

Compounded Semi-Annually

Interest calculated on the principal and previously earned interest twice a year.

Quarterly Compounded

An interest calculation method where interest is added to the principal every quarter, increasing the amount of interest earned or paid.