If There Is Surplus of a Good, Then the Quantity

question 462

Multiple Choice

If there is surplus of a good, then the quantity demanded ________ the quantity supplied and the price will ________.

• A) is less than; rise
• B) is less than; fall
• C) is greater than; rise
• D) is greater than; fall

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Definitions:

Cash Cycle

The period between the initial investment in inventory and receiving cash from the sale of goods or services, reflecting a company's efficiency and management of working capital.

Fixed Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not easily converted into cash.

Source of Cash

Any activity or operation within a business that generates cash inflow.

Inventory Acquisition

The process of obtaining and adding goods or materials to a company's stock for further sale or use.