If Both Demand and Supply Increase, Price Will

question 227

Multiple Choice

If both demand and supply increase, price will

• A)always increase
• B)always decrease
• C)increase only if supply increases more than demand does
• D)increase only if demand increases more than supply does
• E)decrease only if supply increases less than demand does

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Definitions:

Declared Dividends

The announcement by a company's board of directors of the payment of a dividend to shareholders at a future date.

Liabilities

Financial obligations or debts owed by a person, company, or entity to others, requiring the outflow of resources to settle.

Total Rate of Return

A profitability measure that accounts for the gains or losses from investments over a specific period, including interest, dividends, and capital gain.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.