If Quantity Supplied Is Either Greater or Less Than the Equilibrium

question 37

Multiple Choice

If quantity supplied is either greater or less than the equilibrium quantity,then all of the following are true except:

• A)total loss of surplus will depend on the shape of the demand and supply curves.
• B)the resulting loss of consumer surplus will depend on the price of the good.
• C)total loss of surplus will depend on the price of the good.
• D)there will be an inefficient allocation of resources.

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Income Taxes

Taxes imposed by the government on the income of individuals or corporations, calculated as a percentage of taxable income.

Operating Activities

Business actions that are directly concerned with the production and delivery of goods and services, typically reflected in the income statement.