The Difference Between the Demand Price and the Supply Price

question 17

Multiple Choice

The difference between the demand price and the supply price at the quota limit is:

• A)the quota rent.
• B)the rent received by landlords who own rent-controlled apartments.
• C)the opportunity cost of using or buying a good,subject to an import quota.
• D)usually large enough to cause a surplus.

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Definitions:

Equity

The portion of a company's assets that belongs to the shareholders after debts and liabilities have been settled.

Non-Owner Sources

Non-Owner Sources refer to funds sourced from entities other than the owners, such as loans, creditor financing, or any external investments into the business.

Accounting Principle

Fundamental guidelines or rules that underpin the accounting practices and financial reporting standards.

Retained Earnings

The portion of net income that is not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.