Suppose the Market for Wheat Is in Equilibrium

question 10

Multiple Choice

Suppose the market for wheat is in equilibrium. Which of the following is most likely to be true at the equilibrium price?

• A) The demand curve for wheat will intersect the supply curve of wheat at a minimum of two points.
• B) Sellers will not be willing to supply the quantity of wheat that buyers want to buy.
• C) The quantity demanded of wheat will be equal to the quantity of wheat supplied.
• D) No trades will take place in the market.

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Definitions:

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.