According to the Law of Demand, When Will Higher Corn

question 1

Multiple Choice

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

• A) Always.
• B) When the supply of corn is fixed.
• C) When nonprice determinants, like income and the number of buyers, are unchanged.
• D) When there are no shortages or surpluses of corn.

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Definitions:

Dividend Yield

A financial measurement that illustrates the annual amount a company dispenses in dividends compared to its current stock price.

P/E Ratio

The ratio of a company's share price to its earnings per share, indicating the value the market places on its earnings.

Earnings Retention Ratio

The proportion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business, or to pay debt.

Dividend Payout Ratio

The percentage of net income a firm pays to its shareholders as dividends.