If a Surplus Exists in a Market, What Do We

question 142

Multiple Choice

If a surplus exists in a market, what do we know?

• A) The actual price is above equilibrium price, and quantity supplied is greater than quantity demanded.
• B) The actual price is above equilibrium price, and quantity demanded is greater than quantity supplied.
• C) The actual price is below equilibrium price, and quantity demanded is greater than quantity supplied.
• D) The actual price is below equilibrium price, and quantity supplied is greater than quantity demanded.

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Definitions:

Shares Outstanding

The total number of shares of a company that are currently owned by investors, including both public and institutional holdings.

P/E Ratio

Stands for Price-to-Earnings Ratio, a valuation metric used to compare a company’s current share price to its per-share earnings.

Stock Price

The current price at which a share of a company is bought or sold in the financial markets.

EPS

Stands for Earnings Per Share, a financial ratio indicating the amount of income each share of stock represents, serving as an indicator of a company's profitability.