The Following Are the Equations for the Supply and Demand

question 225

Multiple Choice

The following are the equations for the supply and demand curves in the market for weezils: where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If the government imposes a price floor of $4 a weezil, how many weezils will be sold?

• A)5
• B)10
• C)12
• D)14

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Definitions:

Accounts Payable

An accounting recording of amounts a company owes to suppliers for goods or services purchased on credit.

Net Income

The amount of money remaining from revenues after all the firm's expenses are subtracted.

Statement of Cash Flows

A report that details a company’s cash inflows and outflows from operations, investing, and financing, showing how cash levels change over time.

Accounts Receivable

Amounts owed to a business by its customers for goods or services sold on credit.