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The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.
-Refer to the figure above.When the supply curve of flash drives is S₂ and the demand curve of flash drives is D,what is the surplus in the market when the price is $7?
Trading Investments
Securities that a company holds for the purpose of selling them in the short term to profit from price differences.
Valuation Allowance
A reserve established against deferred tax assets that may not be realized, ensuring that the asset's carrying amount does not exceed its likely realization.
Balance Sheet
A document showing a summary of a corporation's assets, liabilities, and equity of its shareholders at a certain moment, offering a glimpse into its financial health.
Income Statement
A document detailing a corporation's income and outgoings within a particular timeframe, concluding with either a profit or a loss.
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