Which of the Following Would Cause Price to Increase

question 63

Multiple Choice

Which of the following would cause price to increase?

• A) higher resource cost
• B) decreased taste for the good
• C) rise in consumer income for an inferior good
• D) increased productivity capacity

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Definitions:

Shares

Ownership units in a corporation or financial asset, shares ensure an equitable share in profits through dividends, when they are announced.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.