The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 103

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. $$\begin{array}{l}\begin{array} { | l | l | l | l | l | l | } \hline & \begin{array} { l } \text { Quantity } \\\text { Demanded } \\\text { (millions) }\end{array} & && \begin{array} { l } \text { Quantity } \\\text { Supplied } \\\text { (millions) }\end{array} & \\\hline \text { Price (\$) } & \text { Year 1 } & \text { Year 2 } & & \text { Year 1 } & \text { Year 2 } \\\hline & & & & \\\hline 30 & 80 & 95 && 140 & 125 \\\hline 26 & 90 & 105 & &135 & 120 \\\hline 22 & 100 & 115 && 130 & 115 \\\hline 18 & 110 & 125 & &125 & 110 \\\hline 14 & 120 & 135 && 120 & 105 \\\hline 10 & 130 & 145 & &115 & 100 \\\hline\end{array}\\\text { TABLE 3- } 3\end{array}$$
-Refer to Table 3- 3. If the price of overnight parcel delivery in Year 2 is $10, how many parcels will actually be delivered?

• A) 115
• B) 130
• C) 145
• D) 100

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Definitions:

Expense Account

An income statement account that represents the cost of goods sold, operating expenses, and non-operating expenses.

Income Statement

A financial report that shows the revenues, expenses, and profit or loss of a company over a specific accounting period.

Debit Total

The sum of all debit entries made in an account or in the general ledger.

Credit Total

The sum of all credits entered into an accounting system during a specific period.