Assume the Market Depicted in the Graph Is in Equilibrium

question 69

Multiple Choice

Assume the market depicted in the graph is in equilibrium. If the market price is set to $12, which of the following statements is true?

• A)For those still interacting in the market, some surplus will be transferred from buyer to seller.
• B)For those still interacting in the market, some surplus will be transferred from seller to buyer.
• C)Producers will gain the surplus of those buyers who drop out of the market.
• D)Consumers will gain the surplus of those sellers who drop out of the market.

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Definitions:

Purchases Journal

A specialized accounting journal used to record all purchases of goods and services on credit.

Cash Receipts Journal

A specialized accounting journal used to record all receipts of cash.

General Journal

A primary accounting record used to record all business transactions not specifically assigned to a special journal.

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which then summarize into a control account in the general ledger.