What is the law of demand?
The law of demand states that there is an inverse relationship between price of a product and the quantity demanded. In other words, as price goes up, quantity demanded goes down. And as price goes down, quantity demanded goes up. This can also be described as buyer's reaction to a change in price. If prices fall, buyers will purchase more of that good or service. That is why stores put merchandise on sale when they want to reduce inventory.
What is a tariff and how does it effect US farm producers?
A tariff is a tax on imported products. If a foreign country places a tariff on US produced products, then foreign consumers must pay more for US farm products. Thus, US farmers will lose market share in that country and US farm exports will decrease.
Define the accounting equation and describe each segment of the equation.
Assets = Liabilities + Owner's Equity. Assets are things of value owned by the business. Liabilities (aka debts) are creditors claims on assets. Owner's Equity is the owner's claims on assets. This is also the Balance Sheet equation.