Good a Is a Normal Good If

question 21

Multiple Choice

Good A is a normal good if

• A)good A satisfies the law of demand.
• B)a rise in the price of a substitute causes the demand for A to increase.
• C)income and the demand for A are negatively related.
• D)the demand for A increases when income rises.
• E)a rise in the price of a complement causes the demand for A to decrease.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company doesn't change.

Book Value

The net value of a company's assets minus its liabilities, often used to evaluate its financial health.

Market Value

The ongoing price for buying or selling an asset or service in the market.

Stock Split

The division of a company's existing stock into multiple shares to boost market liquidity without affecting shareholders' equity.