-Refer to Exhibit 3-7

question 219

Multiple Choice

-Refer to Exhibit 3-7.If S₁ is the relevant supply curve,a decline in technology in the production of good X causes

• A) the supply of good X to shift from S₁ to S₂
• B) the supply of good X to shift from S₁ to S₃.
• C) a movement along S₁ perhaps from point A to point B.
• D) a movement along S₁ perhaps from point A to point C.
• E) no change in the supply of good X.

---

Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Net Income

A company's total profit calculated by subtracting total expenses from total revenues.

Contingently Issuable Common Stock

Shares that may be issued in the future based on the occurrence of certain events.

Diluted Earnings Per Share

A measure of a company's profit divided by the number of shares outstanding, including all possible sources of conversion.