Below is the common equity section (in millions) of fethe industries' last two year-end balance sheets: 2012 2011 common stock $2,000 $1,000 retained earnings 2,000 2,340 total common equity $4,000 $3,340the company has never paid a dividend to its common stockholders. which of the following statements is correct? a. the company's net income in 2011 was higher than in 2012.b. the company issued common stock in 2012.c. the market price of the company's stock doubled in 2012.d. the company had positive net income in both 2011 and 2012, but the company's net income in 2009 was lower than it was in 2011.e, the company has more equity than debt on its balance sheet

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Any point on a country's production possibilities frontier represents a combination of two goods that an economy:

In a market economy, supply and demand are important because theya. (i) play a critical role in the allocation of the economy's scarce resources.b. (ii) determine how much of each good gets produced.c. (iii) can be used to predict the impact on the economy of various events and policies.d. all of (i), (ii), and (iii) are correct.