When a Surplus Exists in a Market,sellers

question 1

Multiple Choice

When a surplus exists in a market,sellers

• A)raise price,which increases quantity demanded and decreases quantity supplied,until the surplus is eliminated.
• B)raise price,which decreases quantity demanded and increases quantity supplied,until the surplus is eliminated.
• C)lower price,which increases quantity demanded and decreases quantity supplied,until the surplus is eliminated.
• D)lower price,which decreases quantity demanded and increases quantity supplied,until the surplus is eliminated.

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Definitions:

Bond Retirement

The process of paying off bond issuance at maturity or through an early buyback, removing the bonds from circulation.

Par Value

Par Value is the nominal or face value of a stock or bond, as stated by the issuer, and has little relation to its market value.

Income Statement

The income statement is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period of time, typically a fiscal quarter or year.

Total Liabilities

The aggregate of all debts and financial obligations a company owes to external parties.