If the Supply and Demand Curves Cross at a Price

question 153

Multiple Choice

If the supply and demand curves cross at a price of $2, at any price above that there will be

• A)an equilibrium.
• B)a surplus.
• C)a shortage.
• D)a crisis.

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Definitions:

Net Profit Margin Percentage

A financial ratio that shows the percentage of net income derived from total revenue, emphasizing the profitability of a company after all expenses have been deducted.

Financing Activities

These activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.

Cash Inflow

Cash inflow is the movement of money into a business from various sources, including sales, investment income, and financing activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.