A Price at Which Quantity Demanded Equals Quantity Supplied

question 18

Multiple Choice

A price at which quantity demanded equals quantity supplied

• A)will cause a shortage or surplus.
• B)is an equilibrium price.
• C)is affordable by all consumers in the economy.
• D)is below the equilibrium price.
• E)is above the equilibrium price.

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Definitions:

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it, and convert the sale into cash.

Cash Disbursements

Money paid out by a company for expenses, operations, or investments.

Accounts Receivable Period

The accounts receivable period is the average number of days it takes for a company to collect payments owed by its customers after a sale has been made.

Expected Sales

The projected amount of sales that a company anticipates to achieve within a specific period.