Ceteris Paribus,an Increase in the Number of Sellers of Running

question 44

Multiple Choice

Ceteris paribus,an increase in the number of sellers of running shoes causes equilibrium price to

• A)Decrease and equilibrium quantity to increase.
• B)Decrease and equilibrium quantity to decrease.
• C)Increase and equilibrium quantity to increase.
• D)Increase and equilibrium quantity to decrease.

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Definitions:

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares by combining them into fewer, proportionally more valuable shares.

Market Price

The immediate price at which an asset or service is open for buying or selling.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and company officers.

Liquidating Dividend

A type of dividend paid by a company when it is in the process of shutting down, representing the return of capital to shareholders from the liquidation of assets.