Figure 3-6 -Refer to Figure 3-6. the Figure Above Represents the Market

question 74

Multiple Choice

Figure 3-6

-Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the price of tote bags is $50. At this price:

• A) the quantity supplied exceeds the quantity supplied by 100. The price will eventually fall to $25 where quantity demanded will equal quantity supplied.
• B) the supply exceeds the demand by 90. Some producers will have an incentive to offer to sell tote bags at a lower price.
• C) there is a surplus equal to 90 coffee grinders that will be eliminated when the price falls to $25.
• D) there is a surplus equal to 90 coffee grinders and the price of coffee grinders will fall until demand is equal to supply.

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Definitions:

Comparative Balance Sheet

Financial statements that display a company’s financial position at different points in time, side by side, to facilitate comparison.

Adjusted Trial Balance

A listing of all company accounts that remains after adjusting entries are made, serving as a foundation for the preparation of financial statements.

Comparative Balance Sheet

Financial statements that display the financial position of a company at different points in time side-by-side, to facilitate comparison.

Income Statement

An income statement is a financial document that reports a company’s financial performance over a specific accounting period, outlining revenues, expenses, and net income.