Use the Following to Answer Question

question 58

Multiple Choice

Use the following to answer question:
-(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.80,there is a monthly:

• A)surplus of 140 bags per month.
• B)shortage of 140 bags per month.
• C)surplus of 70 bags per month.
• D)shortage of 70 bags per month.

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Definitions:

Fundamental Characteristics

Essential qualities or attributes that are critical to the definition, operation, or function of a concept, often used in reference to accounting principles.

Assets

Resources owned by a business from which future economic benefits are expected to flow to the enterprise.

Equity

The value of an ownership interest in property or a business, calculated as total assets minus total liabilities; represents what the owners' claim on the assets is.

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.