A 20% Increase in the Price of Rubber Ducks Leads

question 15

Multiple Choice

A 20% increase in the price of rubber ducks leads to a 10% decrease in the quantity demanded of soap.Therefore:

• A) The two goods are unrelated
• B) The two goods are substitutes
• C) The two goods are complements
• D) The demand for rubber ducks is price elastic
• E) The supply of soap is inelastic

---

Definitions:

Privileged Subscription

An offer to existing shareholders to purchase additional shares in a company before the new shares are offered to the public.

Holder-Of-Record Date

The specific cutoff date established by a corporation by which one must be on the company's books as a shareholder to receive a dividend or other distribution.

Percentage Ownership

The fraction of a company's shares owned by an individual or entity, expressed as a percentage of the total shares outstanding.

Ex-Rights

A status of a stock that signifies it is being traded without the right to receive the most recent dividend payment or issuance.