The Demand Equation for a Certain Product Is P =

question 60

Multiple Choice

The demand equation for a certain product is p = 25 - 0.005q,where p is the price per unit (in dollars) for q units.If its supply equation is p = 1 + 0.03q,then the consumers' surplus when market equilibrium is established is

• A) $1176.49
• B) $1250.87
• C) $1500.
• D) $1675.30
• E) $1800.

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Definitions:

ROE

Return On Equity; a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Operating ROA

A financial ratio that measures the efficiency of a company's operation by dividing its operating income by its total assets.

Net Profit

The amount of income that remains after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of a company's profitability.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all expenses except interest and income tax expenses.