If a Higher Price for Wheat Decreases the Quantity of Corn

question 28

Multiple Choice

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

• A) The supply of wheat increased and the supply of corn decreased.
• B) The quantity of wheat supplied increased and quantity of corn supplied decreased.
• C) The supply of wheat increased and the quantity of corn supplied decreased
• D) The quantity of wheat supplied increased and the supply of corn decreased.
• E) The supply of wheat decreased and the supply of corn decreased.

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Definitions:

Carrying Value

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Equity Accounts

Equity accounts represent the owner's value in a business, reflected through transactions like contributed capital and retained earnings.

Sinking Fund Bonds

Bonds that include a provision requiring the issuer to set aside funds regularly to repay the bond at maturity.

Principal

The primary amount of a loan or investment, excluding interest or profits.