Which of the Following Statements Is False

question 193

Multiple Choice

Which of the following statements is false?

• A) A change in the price of good X will usually change the quantity supplied of good X,ceteris paribus.
• B) A change in the number of sellers of a good can change the supply of that good.
• C) Price and quantity supplied are directly related.
• D) A vertical supply curve represents a direct relationship between price and quantity supplied.

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Definitions:

Oversubscription Privilege

A right given to current shareholders to purchase more shares of a new issue before it is offered to the public, usually at a discount.

Standby Privilege

A feature that may accompany preferred shares or bonds, allowing the holder the right to purchase additional shares at a fixed price.

Open Offer

An invitation by a company to its shareholders to purchase additional shares directly from the company at a specified price.

Seasoned Equity Issue

The process by which a company that is already publicly traded issues additional shares to raise new equity capital.