This Table Shows the Demand and Supply Schedule of a Good

question 143

Multiple Choice

This table shows the demand and supply schedule of a good.
According to the table shown,at a price of $2.00:

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

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Definitions:

LIFO Inventory Method

Last In, First Out, an inventory valuation method where the goods purchased last are the first to be sold.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Cost of Goods Available for Sale

The total cost of merchandise that a company can sell during a certain period, including both the cost of goods purchased and the cost of goods manufactured.

Cash Flows

A financial statement segment that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing flows into operating, investing, and financing activities.