Refer to the Following Figure to Answer the Following Questions

question 69

Multiple Choice

Refer to the following figure to answer the following questions.

-According to the accompanying figure,if the price is $10,there is a ________ of ________ units.

• A) shortage; 15
• B) surplus; 15
• C) shortage; 30
• D) surplus; 30
• E) surplus; 22

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debts.

Debt-To-Equity Ratio

The debt-to-equity ratio is a measure of financial leverage, indicating the proportion of company financing that comes from creditors and investors, calculated as total liabilities divided by shareholders' equity.

Cash Coverage Ratio

This ratio measures a company's ability to cover its interest obligations with its cash flow, indicating financial health and risk.

Times Interest Earned Ratio

A financial metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.