-Refer to the Above Graph to Answer This Question

question 5

Multiple Choice

-Refer to the above graph to answer this question.If the demand were to decrease by 200 units and the supply were to increase by 100 units,what would be the resulting equilibrium price and quantity?

• A)$50 and 600.
• B)$55 and 425.
• C)$60 and 500.
• D)$70 and 400.
• E)$70 and 500.

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Definitions:

Paid-In Capital

The sum of funds that a corporation has obtained from investors in return for stock shares.

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company through the purchase of its shares.