If the Price of Wheat Were to Increase, the Increase

question 76

Multiple Choice

If the price of wheat were to increase, the increase could have been caused by:

• A)a reduction in the rent demanded by landlords for wheat lands.
• B)an upward shift in the consumer demand curve for wheat.
• C)a rise in the price of all of wheat's compliments.
• D)a rise in the marginal product of wheat lands due to a technological advance.
• E)all of the above taken together.

---

Definitions:

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.

Depreciation Expense

The allocated portion of the cost of a fixed asset, written off as an expense over its useful life to reflect its wear and tear or obsolescence.

Amortization Expense

The periodic allocation of the cost of an intangible asset over its useful life.