If the Quantity Demanded Exceeds the Quantity Supplied, Then There

question 94

Multiple Choice

If the quantity demanded exceeds the quantity supplied, then there is

• A)a surplus and the price is above the equilibrium price.
• B)a shortage and the price is above the equilibrium price.
• C)a shortage and the price is below the equilibrium price.
• D)a surplus and the price is below the equilibrium price.

---

Definitions:

Ownership

The legal right or state of having full possession and control over property, assets, or a company.

Method Of Cost Formula

The Method of Cost Formula refers to an accounting approach used to determine the value of inventory sold and remaining in stock, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and Average Cost Method.

Physical Inventory Count

A physical inventory count is the manual process of counting all the goods a company physically has on hand at a specific time to verify stock records and values.

First-In, First-Out

An inventory valuation method where the goods first produced or acquired are sold or used first, presuming that the oldest inventory items are consumed before newer ones.