Which of the Following Would Most Likely Cause Both a Decrease

question 291

Multiple Choice

Which of the following would most likely cause both a decrease in the price of plasma screen TVs and a decrease in the number sold?

• A) an increase in the supply of plasma screen TVs
• B) an increase in the demand for plasma screen TVs
• C) a decrease in the supply of plasma screen TVs
• D) a decrease in the demand for plasma screen TVs

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Definitions:

Capital Asset Pricing Model

A framework detailing how expected returns on assets, especially stocks, correlate with systematic risk.

Accounting Beta

A measure of the sensitivity of a firm's earnings before interest and taxes to changes in the market as a whole.

Pure Play Method

A valuation method focusing on companies specializing in a single line of business to estimate investment risks and returns.

Scenario Analysis

A method used in finance to analyze the different possible outcomes of a decision given varying sets of assumptions.