Suppose Roses Are Currently Selling for $40 Per Dozen

question 232

Multiple Choice

Suppose roses are currently selling for $40 per dozen.The equilibrium price of roses is $50 per dozen.What would we expect?

• A)a shortage to exist and the market price of roses to increase
• B)a shortage to exist and the market price of roses to decrease
• C)a surplus to exist and the market price of roses to increase
• D)a surplus to exist and the market price of roses to decrease

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or stock.

Directors

Individuals elected by shareholders to oversee the management and govern the affairs of an organization, making strategic decisions and ensuring legal compliance.

Decision

The act or process of making choices or judgements based on available data, reasoning, and preferences.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.