Which of the Following Is Consistent with the Law of Demand

question 38

Multiple Choice

Which of the following is consistent with the law of demand?

• A)An increase in the price of a cola causes a decrease in the quantity of cola demanded.
• B)A decrease in the price of a litre of milk causes a decrease in the quantity of milk demanded.
• C)A decrease in the price of juice causes no change in the quantity of juice demanded.
• D)An increase in the price of a DVD causes a decrease in the demand for DVDs.

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Definitions:

Preferred Stock

A type of equity security that usually provides a fixed dividend prior to any dividend payments to common stockholders.

Treasury Stock

Shares of a company's own stock that it has repurchased or never issued to the public.

Asset Investment

The allocation of resources into physical or financial assets with the expectation of generating future returns.

Acquisitions

The process by which a company buys most or all of another firm's shares in order to take control.