Which of the Following Is the Correct Way to Describe

question 55

Multiple Choice

Which of the following is the correct way to describe equilibrium in a market?

• A)At equilibrium, demand equals supply.
• B)At equilibrium, quantity demanded equals quantity supplied.
• C)At equilibrium, market forces no longer apply.
• D)At equilibrium, scarcity is eliminated.

---

Definitions:

TSX Rules

The regulations and guidelines set by the Toronto Stock Exchange governing trading, listing, and company conduct.

Debt-Equity Ratio

This financial measure indicates how a company's assets are financed through a mix of shareholders' equity and debt.

Residual Dividend Policy

A strategy where dividends are based on earnings minus funds retained to finance the firm's optimal capital budget.

After-Tax Earnings

The amount of net income a company retains after paying all taxes, representing the true profitability of the company.