What Is the Equilibrium Price

question 74

Multiple Choice

What is the equilibrium price?

• A)The price at which there is no surplus,but there may be a shortage.
• B)The price at which there is no shortage,but there may be a surplus.
• C)The price at which everyone is able to buy the quantities they desire.
• D)The price at which the quantity demanded equals the quantity supplied.
• E)The price that both buyers and sellers agree is fair.

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Definitions:

Present Value

The current financial value of a future cash sum or series of inflows, adjusted with a determined rate of return.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Creditors' Protection

Legal and financial mechanisms designed to safeguard the interests and rights of creditors, ensuring they receive payment owed to them.

Effective Interest Rate

The real rate of interest earned or paid on a loan or investment over a period, taking into account the effect of compounding.