The Law of Demand Concludes That a Rise in the Price

question 191

Multiple Choice

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

• A) increases; shifts the demand curve for golf balls rightward
• B) decreases; shifts the demand curve for golf balls leftward
• C) decreases; creates a movement up along the demand curve for golf balls
• D) increases; creates a movement down along the demand curve for golf balls

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Articles of Incorporation

Legal documents filed with a government body to legally document the creation of a corporation.

Par Value

The nominal or face value assigned to a share of stock or a bond by the corporation issuing it, important in legal and accounting contexts but not necessarily related to market value.