A Product Market Is in Equilibrium

question 106

Multiple Choice

A product market is in equilibrium:

• A)when there is a surplus of the product.
• B)when there is a shortage of the product.
• C)when consumers want to buy more of the product than producers offer for sale.
• D)where the demand and supply curves intersect.

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Definitions:

Liquidation Value

Liquidation value is the estimated amount of money that an asset or business would fetch if it were to be sold or liquidated immediately, often used in bankruptcy proceedings.

Par Value

The nominal or face value of a stock or bond, set at the time of issue, and often used as an accounting value rather than a measure of market value.

Shares Outstanding

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Contra Stockholders' Equity

Accounts on a company's balance sheet that have a negative balance, reducing the overall equity of stockholders.