Which of the Following Would Cause an Increase in the Supply

question 30

Multiple Choice

Which of the following would cause an increase in the supply of salsa?

• A)A decrease in the price of tortilla chips (if salsa and tortilla chips are complements)
• B)An increase in the price of salsa
• C)An increase in the price of a product that producers sell instead of salsa
• D)An increase in the number of firms that produce peanut salsa

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Definitions:

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Common Dividends

Payments made to shareholders out of a corporation's earnings, reflecting the portion allocated to holders of common shares.

Liquidation

The process of converting assets into cash, often during the winding down of a business or the selling off of stock.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders.