If There Is a Shortage at a Given Price,then

question 58

Multiple Choice

If there is a shortage at a given price,then

• A)That price is the equilibrium price.
• B)That price is greater than the equilibrium price.
• C)That price is less than the equilibrium price.
• D)There is no equilibrium price in the market.

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of a financial instrument, typically the principal plus any final interest payments.

60-Day Note

A type of short-term debt where the repayment is due 60 days after issuance.

360-Day Year

An accounting simplification that assumes there are 360 days in a year to facilitate easier interest calculations.

Direct Write-Off Method

An accounting practice where bad debts are written off against income at the time they are determined to be uncollectible, instead of being provided for in advance.