In a Purely Competitive Market, How Would a Surplus of a Product

question 160

Multiple Choice

In a purely competitive market, how would a surplus of a product be eliminated?

• A)The price of the product would decrease.
• B)The price of the product would increase.
• C)The quantity supplied of the product would increase.
• D)The quantity demanded for the product would decrease.

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Definitions:

Modified Accrual

An accounting method blending cash and accrual basis accounting, recognizing revenues when they are measurable and available, and expenses when incurred.

Government Reporting

The process of preparing and disclosing financial and performance information by government agencies, essential for accountability and transparency.

Full Accrual

Refers to an accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

PSAB

Public Sector Accounting Board, which sets accounting standards for public sector entities in Canada.