Suppose the Equilibrium Price of Good Y Is $5 and the Equilibrium

question 239

Multiple Choice

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. If the price of good Y is $12:

• A)the quantity demanded will be greater than 150 units.
• B)the quantity supplied will be less than 150 units.
• C)there will be an excess demand for good Y.
• D)there will be an excess supply of good Y.

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Definitions:

Cash Flows

The movement of money into and out of a business, indicating the company's ability to generate cash from operations, investments, and financing activities.

Operating Activities

Day-to-day actions that a company takes in conducting its business, such as selling products, managing costs, and paying wages.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.