Assume Both the Demand for and the Supply of 4

question 162

Multiple Choice

Assume both the demand for and the supply of 4 GB flash drives decrease.Which of the following outcomes is certain to occur?

• A) The equilibrium price of 4 GB flash drives will rise.
• B) The equilibrium quantity of 4 GB flash drives will rise.
• C) The equilibrium price of 4 GB flash drives will fall.
• D) The equilibrium quantity of 4 GB flash drives will fall.
• E) Neither the equilibrium price nor the equilibrium quantity of 4 GB flash drives can be predicted.

Identify whether two nominal variables are related or not based on different analytical methods.

Use Excel for creating cross-classification tables and graphical representations to explore relationships between variables.

Understand the utility of comparing relative frequencies, pie charts, and bar charts in analyzing nominal data.

Differentiate between data that contains information on one versus two variables.

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Definitions:

Required Return

The minimum return an investor expects to achieve when investing in a particular asset, taking into account its risk level.

Share Price

The current price at which a share of a company is bought or sold on the stock market.

Free Cash Flow (FCF)

The money a business produces once it has subtracted the funds used to sustain its operations and keep up its capital assets.

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a measure of the cost of capital.