The Difference Between the Total Amount That Producers Would Have

question 97

Multiple Choice

The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called

• A) production excess.
• B) excess demand.
• C) market surplus.
• D) producer surplus.

---

Definitions:

Par Value

The nominal value of a bond, stock, or other security, as stated by the issuer upon issuance.

Discount

A reduction applied to the usual cost of goods, services, or invoices, often to encourage prompt payment or increase sales.

Preferred Stock

A type of stock that grants holders priority dividends, often with fixed rates, and preferential treatment in the event of liquidation over common stockholders.

Par Value

The face value of a bond or stock as stated by the issuer, which bears no relation to its market value.