All Else Held Constant,a Decrease in Supply Will Lead to a

question 72

Multiple Choice

All else held constant,a decrease in supply will lead to a

• A)decrease in price and increase in quantity demanded.
• B)increase in price and increase in quantity demanded.
• C)increase in price and decrease in quantity demanded.
• D)decrease in price and decrease in quantity demanded.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.

Rights Offering

A method by which a company raises capital by offering existing shareholders the chance to buy additional shares at a discount.

Market Price

The current selling or buying price of a service or asset in the market.

New Equity Issue

The process through which a company raises capital by selling shares of stock to the public or private investors for the first time.