If the Price of Aluminum Used to Make Bicycles Increases

question 20

Multiple Choice

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

• A) rightward shift of the demand curve for bicycles.
• B) rightward shift of the supply curve of bicycles.
• C) leftward shift of the demand curve for bicycles.
• D) leftward shift of the supply curve of bicycles.

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Definitions:

Dividend Increase

An action taken by a company to raise the dividend amount paid to its shareholders, typically as a sign of strong financial health or increased profitability.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Annual Dividend

This refers to the total amount of dividends a company pays out to its shareholders per year.

Dividends Increase

An action by a company to raise the amount of money distributed to shareholders from its net income over a period.