If the Price Is Above the Equilibrium Price,then

question 44

Multiple Choice

If the price is above the equilibrium price,then

• A)none of the good will be sold.
• B)the price must rise further to reach the new market equilibrium.
• C)a surplus exists.
• D)a shortage exists.
• E)price will not change;producers will cut back production until the market is in equilibrium.

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, part of the cash flow statement.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash, usually on a quarterly basis.

Equipment Purchase

The acquisition of physical assets like machinery and technology for use in operations, often considered a capital expenditure.

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.