If the Current Price of a Good Is the Same

question 22

Multiple Choice

If the current price of a good is the same as that found at the intersection of the market supply and demand curves, then:

• A) excess demand exists.
• B) excess supply exists.
• C) the price will tend to rise.
• D) the market is in equilibrium.

---

Definitions:

Nontrade Receivables

Receivables that originate from transactions not involving the normal sale of merchandise or services, such as loans to employees or advances to suppliers.

Subsidiary Companies

Companies that are controlled by another company, known as the parent company, through ownership of more than half their voting stock or through other means.

Right of Return

A policy that allows customers to return purchased goods within a specified period if they are not satisfied.

Sales Price

The amount for which a commodity is sold to a customer, excluding tax, shipping, and handling.