If a College Admits Only a Fixed Number of Applicants

question 371

Multiple Choice

If a college admits only a fixed number of applicants every year, then the school's supply curve for admissions is

• A)perfectly elastic.
• B)perfectly inelastic.
• C)quite flat.
• D)downward-sloping.

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Definitions:

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares.

Shares Outstanding

The sum of all shares of a company currently held by its investors, encompassing both large block holdings by institutional investors and shares that are under restrictions.

Liquidating Dividend

A type of dividend paid by a corporation out of its capital base, as opposed to its earnings, often signaling the company is dissolving.