The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 63

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 20.2 In Figure 20.2, if the world price per bushel of wheat is $25 and a tariff of $10 is imposed by the domestic government, what is the domestic demand?

• A)400 bushels
• B)450 bushels
• C)200 bushels
• D)300 bushels
• E)150 bushels

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Definitions:

Permanent Accounts

Accounts that are not closed at the end of the accounting period, hence carry their balances over into the next period; these include asset, liability, and equity accounts.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements.

Unearned Service Revenue

Represents payments received for services that have not yet been performed or delivered, classified as a liability on the balance sheet.