An Insect That Is Resistant to Currently Used Pesticides Has

question 263

Multiple Choice

An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this

• A) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.
• B) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
• C) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
• D) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.

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Definitions:

Accounts Receivable Factor

A financial transaction where a company sells its accounts receivable to a third party (factor) at a discount, to obtain immediate cash.

Bad Debt Risk

The risk that money owed to a company by debtors will not be paid and thus become a bad debt.

Compensating Balance

A minimum account balance that a borrower must maintain as part of a condition for obtaining a loan.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw and use funds up to a designated limit.