In Year 1 the Average Price of X Is $10,and

question 141

Multiple Choice

In year 1 the average price of X is $10,and in year 2 the average price of X is $23.If consumers buy more units of X in year 2 than in year 1,it follows that

• A) the law of supply does not hold for good X.
• B) demand for good X could be higher in year 2 than in year 1.
• C) supply of good X could be less in year 2 than in year 1.
• D) good X buyers have received an increase in income between year 1 and year 2,and good X is a normal good.
• E) b and d

Explain the random walk theory of stock prices and its implications for stock market investors.

Understand the impact of monetary policy and interest rates on stock prices and the stock market.

Grasp the concepts of the price/earnings ratio and its implications on stocks' value.

Recognize the principles of the random walk theory and its assertions about stock price movements.

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Definitions:

Units Received

Refers to the actual quantity of goods that have been delivered or received, typically in a business context for inventory tracking or accounting purposes.

LIFO Method

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Inventory Value

The total cost or market value of all the goods and materials held by a company for the purpose of resale.

Year-End Inventory

The total value of a company's merchandise, goods, and materials on hand at the end of a fiscal year, used to calculate cost of goods sold and profitability.