The " Ceteris Paribus " Clause in the Law of Demand Allows

question 30

Multiple Choice

The " ceteris paribus " clause in the law of demand allows which of the following factors to change?

• A) consumer tastes and preferences
• B) prices of other goods
• C) expectations
• D) price of the good demanded

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Definitions:

Preemptive Right

This is a shareholder's right to buy new shares in proportion to their current holdings before the shares are offered to the public, helping to maintain their ownership percentage.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Par Value

A nominal value assigned to share certificates, bond certificates, or currency, which has little bearing on its market value.

General Journal

A bookkeeping ledger that records each transaction of a company in chronological order.