A Surplus Occurs Whenever

question 18

Multiple Choice

A surplus occurs whenever

• A)current price is greater than equilibrium price
• B)quantity supplied exceeds quantity demanded at the equilibrium price
• C)quantity demanded is greater than quantity supplied
• D)the problem of scarcity of a good is solved
• E)some buyers would be willing and able to pay even more for it than they have to at equilibrium

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Definitions:

Par Value Stock

Capital stock that has been assigned a value per share in the corporate charter.

No-Par Value Stock

Shares issued without a nominal or face value, where the market value of the shares is determined by the price investors are willing to pay.

Stated Value Stock

Stock issued with a nominal value assigned by the board of directors, which is not based on market value but affects the accounting equity.

Cost Method

An accounting method where investments are recorded at their acquisition cost, adjusting for any additional costs or impairments.