According to Say's Law

question 21

Multiple Choice

According to Say's law,

• A) the demand curve is negatively sloped.
• B) the supply curve is positively sloped.
• C) supply creates its own demand.
• D) economic units should produce those goods for which they are low-opportunity-cost producers.

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Definitions:

EPS

Earnings Per Share; a company's profit divided by its number of outstanding shares of common stock.

Financially Distressed

The state of a company or individual facing financial difficulty, often unable to meet debt obligations or manage cash flow effectively.

Bankruptcy

A legal process where individuals or businesses unable to meet their debt obligations can seek relief from some or all of their debts.

Secured Bondholders

Investors holding bonds backed by collateral, giving them a claim on assets in case the issuer defaults.