The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 49

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 21.2 In Figure 21.2, if the world price of wheat is $25 and a $10 tariff is imposed:

• A)imports will decrease from 300 to 200 bushels of wheat.
• B)imports will increase from 200 to 400 bushels of wheat.
• C)imports will remain unchanged.
• D)domestic production will decrease from 200 to 150 bushels of wheat.
• E)domestic production will remain unchanged.

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Definitions:

Preferred Dividends

Regular dividends paid out to preferred shareholders before any dividends are paid to common shareholders, typically fixed in amount or percentage.

Accrued Expense

Expenses that have been incurred but not yet paid for, typically recorded through adjusting journal entries.

Stockholders' Equity

The remaining value of a company's assets after all debts are paid off, which reflects the shareholders' stake in the corporation.

Assets

Resources owned or controlled by a company that are expected to produce future economic benefits.