Suppose That the Quantity of Apples Sold Increases by 30

question 102

Multiple Choice

Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?

• A) 3.0.
• B) 1.5.
• C) 0.2.
• D) 2.0.

Analyze the implications of changes in a corporation's earnings per share.

Assess the accessibility and importance of financial information for investors using the internet.

Recognize the role and legal relevance of proxies in corporate governance.

Learn about the significance of record date, income stocks, and dividend payments to shareholders.

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Definitions:

Stock Dividend

is a dividend payment made in the form of additional shares rather than cash, potentially diluting the value of each share but not the total value.

Owners

Individuals or entities that possess legal rights and control over a company, property, or asset.

New Shares

Securities that represent ownership in a corporation, issued to the public for the first time.

Stock Splits

A corporate action that increases the number of a company's shares by dividing each share, which typically decreases the share price but does not change the overall market capitalization.