At the Point Where the Demand and Supply Curves for a Product

question 132

Multiple Choice

At the point where the demand and supply curves for a product intersect:

• A)the "selling price" and the "buying price" need not be equal.
• B)the market may, or may not, be in equilibrium.
• C)either a shortage or a surplus of the product might exist, depending on the degree of competition.
• D)the quantity which consumers want to purchase and the amount producers choose to sell are the same.

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Definitions:

Ending Inventory

This is the total value of all inventory still available for sale at the end of an accounting period.

Periodic Inventory System

An inventory accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period.

Beginning Inventory

The value of all inventory that a company has in stock at the start of an accounting period.

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated before the new accounting period begins.