If the Price of Contact Lenses Doubles

question 101

Multiple Choice

If the price of contact lenses doubles,

• A)quantity supplied will rise.
• B)quantity supplied will fall.
• C)supply will rise.
• D)supply will fall.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Contractual Loan Restrictions

Stipulations within a loan agreement that limit certain actions of the borrower to protect the interests of the lender.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, typically at a fixed rate.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding the cost of goods sold.