Joyful Gas Company an independent oil producer in Dallas, Texas. In March, company geologist discovered a pool of oil that tripled the company’s proven reserves. Prior to disclosing the new oil to the public, Joy Gas Company quietly bought most of its stock as treasury stock. After the discovery was announced, the company’s stock price increased from $5 to $28. Please discuss and answer at least two the following questions:
What accounting principle is involved?
Who are the stakeholder’s?

The option B is correct. Both excess supply and excess demand are a result of disequilibrium.  

Further Explanation:

Excess supply means the supply of the product rises, the producer produces more amount of goods. Excess demand means the demand for a particular product rises, the demand for a particular product is increased from the expected demand. The excess demand shifts the demand curve towards rightward.  

Justification for the correct and incorrect

A.

Equilibrium: This option is incorrect.  

Equilibrium is a point where the demand and supply of a particular good meet. The equilibrium price is the price where demand is equal to the supply of the goods. The excess demand and excess supply do not meet at the equilibrium level.  

B.

Disequilibrium: This option is correct.  

Disequilibrium is a point where the demand and supply of a particular good do not meet. The excess demand and excess supply do not meet at the equilibrium level, this is called disequilibrium. This is the correct option.   C.

Overproduction: This option is incorrect.

Overproduction refers to the stage of production where the supply of the goods exceeds the demand of the good. This is not correct.  

D.

Elasticity: This option is incorrect.

Elasticity means how much change in the price of the goods due to any factor. In this situation, demand and supply are given. This option is incorrect.

Learn more:

1.Learn more about demand and supply

2.Learn more about demand and type of goods

3.Learn more about goods production  

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Demand and supply

Keywords:

excess supply, excess demand, demand and supply, equilibrium, disequilibrium, overproduction,  producer, seller, rises, change in the price, particular goods.