Prices Communicate Information About the Relative Value of Resources in the Marketplace.Which

question 115

Essay

Prices communicate information about the relative value of resources in the marketplace.Which of the following would cause the value and,hence,the price,of oranges to rise?
a.A freeze wipes out half of the Florida citrus groves.
b.Orange juice is shown to reduce blood cholesterol levels.
c.The price of grape,cranberry,and pineapple juice falls dramatically.

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Definitions:

Dollar Amount

The dollar amount refers to a monetary value expressed in units of currency, particularly in dollars.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before any dividends on common stock.

Capital Stock

The amount of shares that a company's shareholders have purchased and own, representing ownership in the company.

Dividend

A share of the profits paid to shareholders of a corporation, usually distributed in cash or additional stocks.