Suppose We Observe an Increase in the Price of Oranges

question 53

Multiple Choice

Suppose we observe an increase in the price of oranges. Which of the following is the most likely cause?

• A) a scientific discovery that states that oranges cause tooth decay
• B) good growing weather in Florida
• C) a decrease in income if oranges are a normal good
• D) an increase in the price of apples

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Definitions:

Shares Outstanding

Shares Outstanding refer to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing the total equity ownership of a company.

Reverse Stock Split

A process by which a company reduces the total number of its outstanding shares to increase the per share price without changing the company's overall market capitalization.

Stock Split

An action by a corporation in which it splits its current shares into more shares, aiming to increase the trading liquidity of those shares.

Market Price

Market price is the current price at which an asset or service can be bought or sold in an open and competitive market.