Demand and Supply Schedules for Chocolate Bars

question 91

Multiple Choice

Demand and Supply Schedules for Chocolate Bars
TABLE 5-1
-Refer to Table 5-1.Suppose the government imposed a price of $0.60 per chocolate bar.The result would be

• A)excess demand of 450 chocolate bars per week.
• B)excess supply of 450 chocolate bars per week.
• C)excess supply of 1750 chocolate bars per week.
• D)excess demand of 2200 chocolate bars per week.
• E)stockpiling of unsold chocolate bars.

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Definitions:

Credit Loss

A reduction in the projected future cash flows from a loan or other financial instrument due to the borrower's inability to make payments as agreed.

Fair Value

An accounting term referring to the estimated worth of an asset or liability based on current market conditions.

Consolidated Gross Profit

The total gross profit of a company and its subsidiaries before deducting any operating expenses, interest, and taxes, reported in the consolidated financial statements.

Transfer Price

The price used for the sale or transfer of goods and services between divisions within the same company, often used for accounting and tax purposes.