The Equilibrium Price Is Established When the _____

question 87

Multiple Choice

The equilibrium price is established when the _____.

• A)prevailing market price of an item is same as the price at which a consumer can buy the item
• B)demand curve and the supply curve are parallel to each other
• C)opportunity cost of a product is greater than its production cost
• D)production cost of an item is greater than its selling price

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Definitions:

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.

Assets

Economic resources owned or controlled by a company; they have measurable value and are expected to benefit the company by producing cash inflows or reducing cash outflows in the future.

Stock Price Appreciation

The rise in the value of a company's shares over time, reflecting the market's increased valuation of the company.

Common Stock

A form of corporate equity ownership, a type of security representing ownership of a fraction of a company, providing voting rights and a share in the company’s profits.