A Market Can Be Described by the Equations Q_d =

question 137

Multiple Choice

A market can be described by the equations Q_d = 100 - P and Q_s = P. What are the equilibrium price and quantity in this market?

• A) The equilibrium price is $50 and the equilibrium quantity is 50 units.
• B) The equilibrium price is $100 and the equilibrium quantity is 100 units.
• C) The equilibrium price is $0 and the equilibrium quantity is 0 units.
• D) The equilibrium price is $0 and the equilibrium quantity is 100 units.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life to date.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Journal Entry

A record in accounting that documents a business transaction in the general ledger, indicating debits and credits to specific accounts.

Consolidation Entries

Journal entries made in the process of preparing consolidated financial statements to eliminate intercompany transactions and balances among the entities of a consolidated group.