A Surplus Occurs When the Price Is

question 173

Multiple Choice

A surplus occurs when the price is

• A) less than the equilibrium price.
• B) equal to the equilibrium price.
• C) greater than the equilibrium price.
• D) None of the above because the existence of a surplus is independent of the price of the good.

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Definitions:

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year, including cash, marketable securities, receivables, and inventory.

Capital Intensity Ratio

The Capital Intensity Ratio is a financial metric that measures the amount of investment in capital assets required to generate one dollar of revenue.

Total Asset Turnover Ratio

A financial metric used to assess a company's efficiency in using its assets to generate sales or revenue.

Net Fixed Assets

The value of a company's fixed assets minus depreciation, representing the actual value of the assets in use.