Define Equilibrium as It Relates to Markets

question 101

Essay

Define equilibrium as it relates to markets. Describe the process by which a market reaches a new equilibrium. Include an appropriate diagram.

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Definitions:

Sales Journal

A specialized accounting journal used to record all sales of merchandise on credit.

Cash Sales

Cash sales are transactions where payment is made immediately in cash or through electronic means at the time of purchase, without extending credit.

Credit Sales

Sales made by a business where payment is delayed, as opposed to cash sales where payment is immediate.

Cash Receipts Journal

An accounting ledger that tracks all cash inflows or receipts of a business over a period.