In a Market Where the Forces of Demand and Supply

question 43

Multiple Choice

In a market where the forces of demand and supply operate without government intervention,the market price will

• A)always be the equilibrium price.
• B)generally stay above the equilibrium price.
• C)generally stay below the equilibrium price.
• D)tend toward the equilibrium price.

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Definitions:

Cash Flows

The inflows and outflows of cash and cash equivalents, representing the operational, investing, and financing activities of a business.

Post-audit

The evaluation process conducted after a project's completion to assess its actual performance against planned objectives and costs.

Accounting Rate of Return

A financial metric that measures the return on investment expected from a project or asset, calculated as the average annual profit divided by the initial investment cost.

Simple Rate of Return

A calculation that estimates the profitability of an investment, without factoring in the time value of money or cash flows over time.