According to the Law of Demand, Which of the Following

question 96

Multiple Choice

According to the law of demand, which of the following is true?

• A) If prices decrease, customers will buy more.
• B) Customers are not aware of small price changes.
• C) The effect on demand from changes in price cannot be accurately predicted.
• D) Demand equals supply.
• E) If prices increase, customers will buy more.

Comprehend the formula for calculating dividends per share given a company's payout ratio and earnings.

Analyze and calculate the number of outstanding shares after stock dividends and stock splits.

Understand the implications of share repurchases on shareholder value.

Grasp the impact of dividend decisions on company financing and shareholder returns.

---

Definitions:

Least-squares Regression

A statistical technique that identifies the most accurate line of fit by reducing the total of the squared differences between the actual and forecasted values.

Mixed Cost

Expenses that contain both fixed and variable components, changing with the level of output or activity.

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost formula, using the highest and lowest levels of activity.

Electrical Cost

Expenses associated with the consumption of electricity by a company, home, or another facility, impacting operational budgets.