The ʺLaw of Demandʺ States That Changes in

question 289

Multiple Choice

The ʺlaw of demandʺ states that changes in

• A) demand are inversely related to changes in supply.
• B) demand are related directly to changes in supply.
• C) the quantity demanded of a good are inversely related to changes in its price.
• D) the quantity demanded of a good are not related to changes in the quantity supplied.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the corporation's assets and earnings.

Stock Dividend

A dividend payment made in the form of additional shares of the company's stock rather than cash.

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.

Common Stock Dividends Distributable

A liability recognized on a company's balance sheet for dividends declared on common stock that have not yet been paid to shareholders.