If Resale Price Maintenance Leads to a Shift in the Market

question 144

Multiple Choice

If resale price maintenance leads to a shift in the market supply that exceeds the shift in the market demand, the quantity of the good sold will ________and the manufacturer's profit will _________ .

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

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Definitions:

Cash

Liquid assets held by an entity that can be immediately used for transactions.

Ex-dividend Date

The specific date on which shares of a company stop coming with the right to receive the most recently declared dividend, usually set two trading days before the record date.

Record Date

The specified date on which a company determines its shareholders' eligibility to receive dividends or the right to participate in corporate actions.

First-quarter Dividend

This is a dividend payment made by a corporation to its shareholders, typically after the first quarter's earnings are calculated.