Suppose a Market Begins in Equilibrium

question 487

Multiple Choice

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

• A) is less than the quantity supplied and a surplus results.
• B) is less than the quantity supplied and a shortage results.
• C) exceeds the quantity supplied and a surplus results.
• D) exceeds the quantity supplied and a shortage results.

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Definitions:

Borrow

Borrow refers to the act of receiving something with the intention to return it, often with interest in the case of financial borrowing.

Accounts Receivable Period

The average number of days that it takes for a company to receive payments from its customers for invoices issued.

Sales

The total amount of a company's revenues earned from selling its goods or services over a specific period.

Collect

To gather or accumulate items or amounts, often used in the context of collecting funds, debts, or data.