When the Price Is $3

question 111

Multiple Choice

When the price is $3

• A)quantity supplied is greater than quantity demanded and,therefore,price must rise to get back to equilibrium.
• B)quantity supplied is greater than quantity demanded and,therefore,price must fall to get back to equilibrium.
• C)quantity demanded is greater than quantity supplied and,therefore,price must rise to get back to equilibrium.
• D)quantity demanded is greater than quantity supplied and,therefore,price must fall to get back to equilibrium.
• E)None of these choices are correct.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the financial position of a company at different points in time side-by-side for comparison.

Cost Of Goods Sold

The immediate expenses linked to the manufacturing of products sold by a business, comprising costs for materials and labor.

Direct Method

An approach in cost accounting that traces costs directly to cost objects without distributing indirect costs.

Inventories

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the future.