Suppose That the Demand and Supply Curves in the Market

question 23

Multiple Choice

Suppose that the demand and supply curves in the market for apples have the following functional form: Q D = 250 - 4p and QS = 10 + p.If the prevailing price on the market is 50,then

• A)the market is clearing.
• B)the market exhibits an excess supply of 10 units.
• C)the market exhibits an excess supply of 240 units.
• D)the market exhibits an excess demand of 10 units.
• E)the market exhibits an excess demand of 240 units.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Gross Margin

A financial metric indicating the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage.

Inventory Account

An account in the financial statements that reflects the value of a company's goods that are available for sale or in the process of being produced for sale.

Consolidated Statement

A financial statement that includes all assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries.