A Surplus Occurs in a Market When ________

question 136

Multiple Choice

A surplus occurs in a market when ________.

• A) demand exceeds supply
• B) the price is lower than the equilibrium price
• C) the price is higher than the equilibrium price
• D) the marginal cost of production is negligible

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Definitions:

Cash Flow

The overall aggregation of money movement into and out of a firm, essentially determining its ability to quickly mobilize assets.

Revenues

Revenue obtained through standard business activities, factoring in discounts and allowances for goods returned.

Earnings Per Share

Earnings per share (EPS) is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Net Income

The amount of profit a company has left over after all expenses and taxes are deducted from total revenue.