In the Above Graph, Q_S and Q_D Represent the Supply

question 14

Multiple Choice

In the above graph, Q_S and Q_D represent the supply and the demand curves respectively in the market for train tickets. Refer to the graph to answer the question.
Suppose price of a ticket is reduced to £15. Which of the following is likely to happen?

• A) The supply curve will become less inelastic as the price falls.
• B) The number of tickets sold will be equal to 250.
• C) The demand curve will become vertical.
• D) The buyers in the market will face a shortage of 50 tickets.

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Definitions:

Annual Dividend

The total dividend payment a shareholder receives from a company in a single year.

Market Rate of Return

The average rate of return that investors expect to earn in the financial markets from an investment, reflecting the risk compared to the risk-free rate.

Dividend Increases

Dividend increases refer to the raising of the dividend amount paid out by a company to its shareholders over time.

EPS Growth Rate

The annual rate at which a company's earnings per share increases, indicating the company's profitability over time.