Use the Following to Answer Questions: Table: Equilibrium Price, Quantity

question 103

Multiple Choice

Use the following to answer questions: Table: Equilibrium Price, Quantity $$\begin{array} { c c c } \hline \boldsymbol { P } & \boldsymbol { Q } _ { \mathbf { d } } & \boldsymbol { Q } _ { \mathbf { s } } \\\hline \$ 10 & 50 & 30 \\12 & 45 & 35 \\14 & 40 & 40 \\16 & 35 & 45 \\18 & 30 & 50 \\\hline\end{array}$$
-(Table: Equilibrium Price, Quantity) Refer to the table. If the price in the market was $12, there would be a:

• A) shortage of 10 units.
• B) shortage of 45 units.
• C) surplus of 10 units.
• D) surplus of 35 units.

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Definitions:

Marketable Securities

Highly liquid short-term debt investments held by companies instead of cash. Marketable securities provide nearly the liquidity of cash but earn a modest return.

Liquid Investments

Liquid investments are assets that can be quickly and easily converted into cash without significant loss of value.

Aggressive Collection

A technique used by businesses to rapidly pursue the collection of outstanding receivables to improve cash flow and reduce delinquencies.

ACP (Average Collection Period)

The average number of days it takes for a business to receive payments owed by its clients, reflecting the effectiveness of a company's credit and collection policies.