Which of the Following Would Not Be a Reason for the Market

question 148

Multiple Choice

Which of the following would not be a reason for the market price of Carlyle Corporation to increase?

• A)Carlyle Corp.has had good earnings in the present period.
• B)A sustained increase in key interest rates.
• C)The general condition and future outlook of the economy is good.
• D)Investors believe Carlyle Corp.will do well in the future.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Elastic

A characteristic of demand or supply indicating a high responsiveness to changes in price.

Pure Rent

Income received by a landowner for the use of a natural resource, land, or location that is essentially in fixed supply.

Pure Rent

Income earned from owning a resource completely fixed in supply, with no additional production cost.