Which of the Following Could Keep a Market from Ending

question 59

Multiple Choice

Which of the following could keep a market from ending up in equilibrium?

• A) Buyers have inadequate information about products.
• B) Sellers have adequate information about products.
• C) Buyers have realistic expectations about market prices.
• D) Sellers have accurate expectations about market behavior.

---

Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller, typically due to a return or rebate.

Discount Period

The time period during which a debtor can pay less than the full amount owed to clear a debt, typically as an incentive for early payment.

Multiple-Step Income Statement

An intricate financial report that distinguishes between operating revenues and expenses and those that are non-operating in order to determine the net income.

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting total expenses from total revenues in one step.