A drop in the demand for soybean meal in China would
A. decrease the total demand for soybeans.
B. decrease the price of soybeans.
C. increase the quantity of soybeans.
D. Both A and B are correct.
Ans: D. Both A and B are correct.
You might also like to view...
Suppose that an economy produces 500 units of output. It takes 10 units of labor at $15 a unit and 4 units of capital at $50 a unit to produce this amount of output. The per unit cost of production is:
A. $1.42 B. $1.24 C. $0.70 D. $0.40
If the U.S. government places tariffs on imports from countries that have been accused of deliberately undervaluing their currencies, the price of these imports will ________ and the demand for the undervalued currency will ________
A) rise; fall B) fall; rise C) rise; rise D) fall; fall
The market level (magnitude) of economic rent is determined by the
a. supply side of the market. b. demand side of the market. c. intersection of supply and demand. d. elasticity of demand for land.
Adverse selection is created by
A) incentives to change behavior after two parties have reached an agreement. B) risk. C) lump-sum taxes. D) private information.