In the Market for Personal Computers and in the Stock

question 70

Multiple Choice

In the market for personal computers and in the stock market:

• A) supply and demand shifts change prices and quantities.
• B) persistent shortages and surpluses rarely exist.
• C) in response to shifts in demand and supply, equilibrium is restored quickly.
• D) all of the above are true.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating potential of an investment.

Cash Dividends Per Share

A measure of the amount of cash dividends paid out to shareholders per share of common stock.

Market Price

The price point at which a service or asset is currently available for trading within a market.

Dividend Yield

A measure of how a company's annual dividend disbursement stands in relation to the price of its stocks.