-In the Above Figure, If D₂ is the Demand Curve

question 299

Multiple Choice

-In the above figure, if D₂ is the demand curve, then a price of P₃ would result in

• A) a shortage of Q₄ - Q₃.
• B) a shortage of Q₃ - Q₁.
• C) a surplus of Q₃ - Q₁.
• D) a surplus of Q₄ - Q₀.

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Definitions:

Reversing Entry

An accounting method used to reverse the impact of certain journal entries made in the previous accounting period for the sake of simplicity in future record keeping.

Interest Accrued

The accumulated interest on a loan or bond that has not yet been paid to the lender.

Proceeds of a Note

The total amount of money generated or to be paid out from a promissory note or financial instrument.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.