Which of the Following Would Most Likely Cause the Current

question 339

Multiple Choice

Which of the following would most likely cause the current demand for DVD players to rise?

• A) an increase in consumer income
• B) a decline in the price of VCRs, a substitute for DVD players
• C) a decrease in the price of DVD players
• D) the expectation that the price of DVD players will decline sharply during the next six months

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Expenses

Costs incurred in the operation of a business which may include costs such as rent, utilities, payroll, and materials.

Revenues

The sum of money made through the sale of goods or services, which constitute the primary operations of a corporation.

Stockholders' Equity

A financial metric representing the residual interest in a company's assets after deducting liabilities, essentially the net assets owned by shareholders.