Larger Quantities of Any Good Will Be Supplied at Higher

question 96

Multiple Choice

Larger quantities of any good will be supplied at higher prices because

• A)consumers will be more satisfied
• B)higher prices attract resources from other uses
• C)people are naturally lazy and have to be bribed to give up their leisure
• D)price and quantity supplied are inversely related
• E)of the law of decreasing opportunity cost

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Definitions:

Acquisition

A merger in which one company acquires the stock of another. May be friendly or hostile (unfriendly). See Merger.

Leverage

Utilizing leveraged capital to boost the prospective returns of an investment, concurrently escalating the risk of financial loss.

Premium

The amount by which the price of a financial instrument or asset exceeds its face value or principal value, often related to bonds, insurance, or options trading.

Arbitrage

The simultaneous purchase and sale of the same asset in different markets to profit from unequal prices.