When a Market Is in Equilibrium

question 58

Multiple Choice

When a market is in equilibrium,

• A)there is neither a surplus nor a shortage.
• B)the number of buyers equals the number of sellers.
• C)firms are producing the maximum quantity possible given the existing technology.
• D)supply equals demand.
• E)the quantity supplied is greater than or equal to the quantity demanded.

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Definitions:

Reversal Of Write Downs

The process by which a previously recognized impairment loss on an asset is reversed, often because the reasons for the impairment have ceased, leading to an increase in the asset's carrying amount.

Net Realisable Value

The estimated selling price of goods, minus the costs of their sale or completion.

Write Down Reversal

The process of reversing a previously recorded write down, often due to an increase in the asset's value or a correction of the original value assessed.

Disclosure Requirements

These are mandates that entities must follow when revealing financial and other significant information in their reports, aimed at ensuring transparency and facilitating informed decision-making by users of financial statements.