All Else Being Equal, the Decrease in Consumer Preference Predicted

question 18

Multiple Choice

All else being equal, the decrease in consumer preference predicted by Apple for its iPhone 8 would be represented by a shift of the:

• A)supply curve for iPhones to the right.
• B)supply curve for iPhones to the left.
• C)demand curve for iPhones to the right.
• D)demand curve for iPhones to the left.

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Definitions:

Preemptive Rights

A shareholder's right to buy new shares issued by a company in proportion to their existing shareholding, before the shares are offered to the public.

Stock Purchase

The act of buying shares in a company, giving the purchaser a portion of ownership in that company.

Common Stock Holders

Individuals or entities that own a share of common stock in a corporation, granting them voting rights and a portion of the company’s profits.

Preferred Stockholders

Preferred stockholders are investors who own preferred shares in a company, which often entitle them to fixed dividends and priority over common stockholders in asset liquidation.