In a Free Market Setting Where Quantity Supplied Is 50

question 36

Multiple Choice

In a free market setting where quantity supplied is 50 units and quantity demanded is 40 units, price will:

• A) rise.
• B) fall.
• C) remain the same.
• D) move in an indeterminate direction.

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Definitions:

EPS

Earnings Per Share; an indicator of a company's profitability, calculated as the company's net income divided by the number of its outstanding shares.

Capital Restructuring

Changing a firm’s capital structure intentionally by buying and selling stocks and bonds simultaneously.

Leverage

Leveraging borrowed money to enhance the expected gains from an investment.

Financial Risk

The chance of experiencing financial loss from an investment or enterprise because of different economic elements.