The Graph Illustrates the Market for Computers

question 37

Multiple Choice

The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

• A) equilibrium quantity of computers will decrease.
• B) equilibrium price of a computer will fall.
• C) equilibrium quantity of computers will increase.
• D) equilibrium quantity of computers might increase, decrease or not change.
• E) equilibrium price of a computer will rise.

Understand the accounting for treasury stock transactions and their impact on stockholders' equity.

Grasp the concept of stock splits and their effects on par value and number of shares.

Describe the features of preferred stock including dividend preferences and voting rights.

Calculate stockholders' equity based on given financial information.