Exhibit 3-6 -Refer to Exhibit 3-6.If an Increase in Income Causes the in Income

question 198

Multiple Choice

Exhibit 3-6

-Refer to Exhibit 3-6.If an increase in income causes the demand for good X to shift from D? to D?,then good X is

• A) a normal good.
• B) an inferior good.
• C) a substitute good.
• D) a complementary good.
• E) a neutral good.

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Definitions:

Ex-Dividend Date

The date on which a stock begins trading without the right to receive the next dividend payment, causing its price to adjust downwards.

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments on behalf of clients.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.