If a Consumer Places a Value of $13 on a Particular

question 97

Multiple Choice

If a consumer places a value of $13 on a particular good and if the price of the good is $16, then the

• A)consumer enjoys consumer surplus if he or she buys the good.
• B)consumer does not purchase the good.
• C)market is not a competitive market.
• D)price of the good will fall due to market forces.

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Definitions:

NPVGO

Net Present Value of Growth Opportunities; the present value of future investments' cash flows minus initial investments.

Dividend Growth Rate

The annual percentage rate of growth of a company’s dividend payments to shareholders.

Investor's Return

The positive or negative shift in an investment's financial value during a set interval, portrayed as a percentage of the investment's initial price.

Stock Price

The cost of purchasing a share of a company's stock, determined by the supply and demand for it in the market.