If a Demand Curve Goes Through the Point P = $Q _ { d }$

question 29

Multiple Choice

If a demand curve goes through the point P = $6 and $Q _ { d }$ = 400, then

• A) $6 is the highest price consumers will pay for 400 units.
• B) $6 is the lowest price consumers can be charged to induce them to buy 400 units.
• C) 400 units are the most consumers will buy if price is $6.
• D) consumers will buy more than 400 if price is $6.
• E) both a and c

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Definitions:

Authorized Shares

The upper limit of shares a corporation can legally distribute, as outlined in its articles of incorporation.

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company or corporation.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.