Suppose Demand for a Good Is Q_D = 100 -

question 16

Multiple Choice

Suppose demand for a good is Q_D = 100 - P and supply is Q_S = -20 + P.Suppose that a nationwide quota (of 20) is enforced so that more can be used in a war effort.What is the consumer surplus?

• A)200
• B)400
• C)600
• D)800

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Definitions:

Operating Activities

Activities directly related to the business’s primary operations, such as sales, costs, and expenses, impacting the company's cash flow.

Investing Activities

Transactions and events that relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents, included in a company's cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, part of a company's cash flow statement.

Loss

Refers to the decrease in economic benefits during an accounting period, which typically includes expenses exceeding income.