There Is a Surplus in a Market for a Product

question 231

Multiple Choice

There is a surplus in a market for a product when:

• A)the decrease in supply is greater than the increase in demand.
• B)the increase in demand is greater than the decrease in supply.
• C)quantity supplied is less than quantity demanded.
• D)quantity demanded is less than quantity supplied.

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Definitions:

Free-Writing Prospectus

A written communication used during a securities offering to provide potential investors with additional information not contained within the formal prospectus.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but has not retired, often used for reissuing or as a strategic financial move.

Mortgage Notes

Legal documents representing a promise to pay a specific amount of money, secured by a mortgage on property.

Investment Contract

In securities law, a type of security encompassing any contract by which an investor invests in a common enterprise with an expectation of profits solely from the efforts of persons other than the investor.