-Consider the Demand Curves for Soft Drinks Shown in the Figure

question 406

Multiple Choice

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

• A) none of the points illustrated.
• B) b.
• C) c.
• D) d.

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Annual Cash Dividends

The total amount of cash payments made to shareholders in a year as a distribution of corporate profits.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Days' Sales Uncollected

A financial ratio indicating the average number of days it takes for a company to collect revenue after a sale has been made.