Which Factor Would Cause a DECREASE in the Supply of a Good

question 2

Multiple Choice

Which factor would cause a DECREASE in the supply of a good?

• A)a decrease in input prices
• B)an increase in the number of sellers in the market
• C)suppliers' expectations of higher prices in the future
• D)an advancement in the technology for producing the good

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Definitions:

Sustainable Growth Rate

Refers to the maximum growth rate a firm can achieve without needing to increase its financial leverage.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, represented as a percentage of the company's total earnings.

Retained Earnings

Retained earnings are the portion of a company's net profits that are kept within the company instead of being paid out to the shareholders as dividends. This reinvestment is often used for business expansion or to pay off debt.

External Financing Need

The amount of funding required by a firm to cover investments and growth not financed by internal cash flows.