Excess Supply Is

question 48

Multiple Choice

Excess supply is:

• A) the result of a price that is above equilibrium, causing the quantity demanded to exceed the quantity supplied.
• B) the result of a price that is below equilibrium, causing the quantity demanded to exceed the quantity supplied.
• C) the result of a price that is above equilibrium, causing the quantity supplied to exceed the quantity demanded.
• D) the result of a price that is below equilibrium, causing the quantity supplied to exceed the quantity demanded.

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Definitions:

Excess Cash

The amount of cash owned by a business that exceeds its immediate operational and investment needs, often signaling financial strength.

Equity Financed

Refers to the method of funding a company or its operations through selling shares of stock to investors, rather than acquiring debt.

Market Price

The current value at which an asset or service can be bought or sold in a marketplace.

Ex-dividend

The ex-dividend date is the date on which a stock begins trading without the entitlement to receive the most recently declared dividend, meaning buyers from that day onward will not receive the dividend.