At an Equilibrium Price for Gasoline

question 193

Multiple Choice

At an equilibrium price for gasoline,

• A)everyone with the desire and the income to buy gasoline at that price can do so.
• B)surpluses are inevitable.
• C)inherent market forces will eventually change the quantities demanded and supplied.
• D)suppliers must be using the most efficient oil-drilling equipment available.

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Definitions:

Calls

Options that give the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time frame.

Reissue

The act of bringing something back into circulation or availability, particularly in the context of financial securities or published materials.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.

Dividends

Payments made by a corporation to its shareholders, often as a distribution of profits.