Use the Following to Answer Questions

question 202

Multiple Choice

Use the following to answer questions
Figure: Interpreting Market Equilibrium
-(Figure: Interpreting Market Equilibrium) If price were $10,then there would be:

• A) a shortage of 4,000 units and price will fall.
• B) a shortage of 2,000 units and price will rise.
• C) a surplus of 4,000 units and price will fall.
• D) a surplus of 2,000 units and price will fall.

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Definitions:

Net Income

The net income of a business once all costs and taxes are deducted from the total earnings.

Operating Cash Flow

The cash generated from a company's normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

Earnings Before Interest And Taxes

A financial metric indicating a company's profitability before expenses from interest and taxes are deducted.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.