Assume That the Supply Curve for Corn Is Upward-Sloping

question 113

Multiple Choice

Assume that the supply curve for corn is upward-sloping.In the market for corn,a primary input in the production of ethanol,total surplus _____ when the price of ethanol increases.

• A)increases
• B)decreases
• C)does not change
• D)The answer cannot be determined without information about the supply curve.

---

Definitions:

Goodwill Impairment

An accounting concept that occurs when the carrying value of goodwill exceeds its fair value, indicating that the asset has lost value.

FIFO System

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.

Straight Line Amortization

A method of allocating an asset's cost evenly across its useful life.

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.