The Demand Curve Is P = 700 - 10QD

question 66

Multiple Choice

The demand curve is P = 700 - 10QD. The supply curve is P = 400 + 5QS. At market equilibrium, the equilibrium quantity is ________ and the equilibrium price is ________.

• A)20; 500
• B)5; 0.05
• C)0.05; 5
• D)500; 20
• E)300; 15

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Definitions:

Additional Paid-In Capital

The excess amount paid by investors over the par value of the stock during the issuance of shares.

Treasury Stock

Securities that were initially distributed to the public but later repurchased by the issuer, thus lowering the volume of shares in circulation.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest held by stockholders.