If a Surplus Currently Exists in the Market for Apples

question 106

Multiple Choice

If a surplus currently exists in the market for apples, which of the following statements is most accurate?

• A) The quantity of apples demanded exceeds the quantity supplied, and the market price is below the equilibrium price.
• B) The quantity of apples supplied exceeds the quantity demanded, and the market price is above the equilibrium price.
• C) The quantity of apples supplied exceeds the quantity demanded, and the market price equals the equilibrium price.
• D) The quantity of apples supplied exceeds the quantity demanded, and the market price is below the equilibrium price.

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Definitions:

Operating Net Cash Flow

The amount of cash generated by a company’s normal business operations over a specific period.

Profitable New Plant

A profitable new plant refers to a newly established manufacturing or production facility that generates earnings in excess of its operating and capital costs.

Long-Term Debt

A type of loan or borrowing that is due for repayment in more than one year.

Tax System

A tax system is the structured framework within which taxes are imposed on individuals, corporations, goods, and services by a government entity.