Which of the Following Is the Best Way to Describe

question 140

Multiple Choice

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

• A) price is the lowest possible.
• B) quantity supplied equals the quantity demanded.
• C) supply and demand curves can never shift again.
• D) price is usually affordable to most people.

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Definitions:

Short-Term Debt

Borrowings that are due for repayment within one year, used to finance immediate expenses or working capital requirements.

Common-Sized Income Statement

A financial statement in which all items are expressed as a percentage of sales, facilitating comparison with other periods or companies.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Vertical Analysis

A method of financial statement analysis in which each entry is listed as a percentage of another item, frequently used to review relative sizes of account entries.