There Are Two Universities,A and B,in a City

question 87

Multiple Choice

There are two universities,A and B,in a city.Tuition rises at University A and,as a result,the demand for attending University B rises.It follows that educational services at the two universities are

• A) complements.
• B) normal goods.
• C) inferior goods.
• D) substitutes.
• E) none of the above

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Definitions:

Red Herring

A preliminary prospectus filed by a company with the SEC, usually in connection with an initial public offering (IPO), that is subject to amendment.

Rights Offerings

An offer made by a company to its shareholders to purchase additional shares directly from the company at a specified price and within a specific time period.

Pure Rights Offerings

A method of raising capital in which a company offers existing shareholders the right to purchase additional shares directly, usually at a discount.

Price Drop

A decrease in the price of a commodity, security, or other financial instrument, often reflecting changes in demand and supply.