Which of the Following Pairs of Equations Describes the Supply

question 159

Multiple Choice

Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables? $$\begin{array} { | c | c | c | } \hline \text { Price } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 20 & 0 & 40 \\\hline \$ 25 & 10 & 40 \\\hline \$ 30 & 20 & 40 \\\hline \$ 35 & 30 & 40 \\\hline \$ 40 & 40 & 40 \\\hline \$ 45 & 50 & 40 \\\hline\end{array}$$

• A)Qs = P - 40; Qd = 40P, respectively
• B)Qs = P - 20; Qd = 40, respectively
• C)Qs = 2P - 40; Qd = 40, respectively
• D)cannot be determined

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Definitions:

Balance Sheet

An accounting record that outlines a business's assets, obligations, and equity of shareholders at a designated time.

Total Asset Turnover Ratio

An indicator assessing the capability of a firm to turn its assets into sales revenue efficiently.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as the total assets minus total liabilities.