When the Demand Curve Shifts Rightward and the Supply Curve

question 189

Multiple Choice

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price ________ and the equilibrium quantity ________.

• A) rises; decreases
• B) falls; increases
• C) rises; probably changes but the direction of the change cannot be determined
• D) probably changes but the direction of the change cannot be determined; increases

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Definitions:

No-par Common Stock

No-par common stock is issued without a par value, and its value is determined by what investors are willing to pay for it, rather than being stated in the company's charter.

Cash Dividend

A payout to shareholders from a company's earnings in the form of cash.

Dividends in Arrears

This term refers to dividends on preferred shares that have been declared but not yet paid to shareholders.

Stockholder Group

A Stockholder Group consists of individuals or entities that own shares of stock in a company, giving them certain rights, such as voting on corporate matters.