An Excess Quantity Supplied Can Be Corrected by

question 21

Multiple Choice

An excess quantity supplied can be corrected by

• A) a fall in price.
• B) legally fixing the price at its present level.
• C) a decrease in demand.
• D) an increase in supply.

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Definitions:

Collection Delay

The time lag between when a company issues an invoice and when it actually receives payment, affecting cash flow and liquidity.

Average Daily Receipts

The average amount of money received by a company per day over a given period, often used to measure cash flow or performance.

Customers

Individuals or entities that purchase goods or services from a business, essentially driving the revenue of the company.

Miller-Orr Model

A financial model used to manage cash balances, determining the optimal point to transfer funds in and out of a non-interest bearing cash account.