Suppose Demand for a Good Is Q_D = 100 -

question 44

Multiple Choice

Suppose demand for a good is Q_D = 100 - P and supply is Q_S = -20 + P.What is the consumer surplus?

• A) 200
• B) 400
• C) 600
• D) 800

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Permanent Accounts

Accounts that are not closed at the end of the accounting period, hence carry their balances over into the next period; these include asset, liability, and equity accounts.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements.