Indicate on the Blanks Below the Effect (I = Increase,D

question 89

Essay

Indicate on the blanks below the effect (I = increase,D = decrease,NE = no effect)of a stock split on each of the items listed.
_____ 1.Assets
_____ 2.Balance of Common Stock account
_____ 3.Total contributed capital
_____ 4.Total retained earnings
_____ 5.Total stockholders' equity
_____ 6.Par value per share
_____ 7.Total number of shares outstanding

---

Definitions:

Willingness-To-Pay

The maximum amount an individual is ready to spend to purchase a good or service or to avoid something undesirable.

Marginal Cost

The price required to create another unit of a good or service.

Advertising Elasticity of Demand

The responsiveness of the quantity demanded of a good to a change in the amount of advertising for that good.

Marginal Cost of Production

The change in total production costs that comes from making or producing one additional item.