(Figure: Market Equilibrium) Refer to the Figure

question 76

Multiple Choice

(Figure: Market Equilibrium) Refer to the figure. At a price of$1, the market is characterized by a(n) :

• A)excess supply of 2 units.
• B)excess demand of 4 units.
• C)surplus of 4 units.
• D)shortage of 6 units.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Bank Borrowings

Funds that have been obtained from a bank through various types of loans.

Cash Management

The practice of collecting, managing, and investing cash in a way that meets the financial objectives of the organization.

Financing Activities

Transactions involving raising capital or repaying funds to owners and creditors, reflected in a firm's cash flow.