Which of the Following Events Must Result in a Higher

question 125

Multiple Choice

Which of the following events must result in a higher price in the market for cigars?

• A)Demand for cigars increases,and supply of cigars decreases.
• B)Demand for cigars and supply of cigars both decrease.
• C)Demand for cigars decreases,and supply of cigars increases.
• D)Demand for cigars and supply of cigars both increase

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of stock at a set price on or before a specified date.

Compensation Plans

A system of payment or rewards offered by an employer to its employees for their work or performance.

Capital Surplus

Funds received by a company from the sale of shares in excess of their stated par value, recorded as equity in the financial statements.

Par Value

A face value assigned to a share of stock by the company's charter.