Which of the Following Would Cause an Increase in the Supply

question 242

Multiple Choice

Which of the following would cause an increase in the supply of wheat?

• A)an increase in fertilizer costs
• B)a decrease in the price of bread
• C)a decrease in the price of corn
• D)an increase in land prices
• E)an expectation that the price of wheat will be higher next period

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Definitions:

Spontaneous Financing

Financing that arises naturally from the normal operation of a business, such as trade credit from suppliers.

Seasonal Working Capital

Additional funds a business may need at certain times of the year to manage increased operational activities.

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.