In a Market the Demand Curve Is Given by P

question 7

Multiple Choice

In a market the demand curve is given by P = 100 - 2q and supply by P = 2q.What is PS in the market equilibrium?

• A)PS = 725
• B)PS = 125
• C)PS = 500
• D)PS = 625
• E)None of the above.

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Definitions:

Net Income

Net income is the profit a company makes after deducting all its costs, expenses, interest, and taxes from its total revenues.

Book Value

The worth of an asset as stated in its balance sheet, factoring in the original cost of the asset reduced by depreciation.

Equity Method

An accounting technique used by a company to record its investment in another company, typically when it has significant influence but does not fully control it, usually through owning 20% to 50% of the voting stock.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.