A Company Recorded Net Purchases of $20

question 150

Multiple Choice

A company recorded net purchases of $20.3 billion for 20B. In 20A, ending trade payables was $1.2 billion and in 20B, it was $1.6 billion. How much cash was paid to suppliers in 20B?

• A) $19.9 billion
• B) $18.7 billion
• C) $21.9 billion
• D) $20.7 billion

---

Definitions:

Deadweight Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called efficiency loss.

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive, due to market prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.