The Gap Between the Supply Curve and the Market Price

question 239

Multiple Choice

The gap between the supply curve and the market price is called:

• A) consumer surplus.
• B) deadweight loss.
• C) markup.
• D) producer surplus.

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Definitions:

Board of Directors

The Board of Directors is a group of individuals elected by the shareholders of a company to oversee the management and make major decisions.

Stock Dividend

A dividend payment made in additional shares of a company's stock instead of cash.

Cash Dividend

A distribution of earnings made by a company to its stockholders, often in the form of profits.

Stock Split

A corporate action that increases the number of shares by dividing each share, which typically reduces the price per share.