The Market Clearing Price Is

question 334

Multiple Choice

The market clearing price is

• A) the price which eliminates excess quantity supplied or excess quantity demanded.
• B) the price which leaves an excess quantity demanded.
• C) the price which leaves an excess quantity supplied.
• D) the lowest price at which a positive quantity supplied exists.

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Definitions:

Receivables

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Ending Cash Balance

The amount of cash a company has available at the end of a financial period.

Sales

The total amount generated from selling goods or services over a specific period of time.

Accounts Receivable Period

The average number of days it takes for a company to collect payments owed by its customers.