Use the Figure Below to Answer the Following Question(s)

question 404

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 3-9
-Given the demand (D) and supply (S) for gasoline in Figure 3-9, if the price of gasoline were $3 per gallon,

• A) consumers would wish to purchase more than was being supplied.
• B) producers would be supplying more than consumers wished to purchase.
• C) the quantity consumers wished to purchase would equal the quantity that producers wished to supply.
• D) there would be a tendency for the price of gasoline to rise.

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Definitions:

Journal Entries

Recorded transactions in the accounting books that track all financial activities of a business.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and a claim on profits in the form of dividends.

Stock Dividend

A dividend paid to shareholders in the form of additional shares of stock rather than cash.

Stock Split

A corporate action that increases the number of shares outstanding by dividing each share, which typically reduces the share price.