Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an Figure

question 223

Multiple Choice

Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point

• A)The equilibrium point will move from E to A.
• B)The equilibrium point will move from E to B.
• C)The equilibrium point will move from E to C.
• D)The equilibrium point will remain at E.
• E).If the technology to produce motorcycles improves and the number of buyers increases,how will the equilibrium point change?

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Pre-split Price

The pre-split price is the value of a stock before it undergoes a split, affecting the total number of shares in circulation but not the company's market capitalization.

Post-split Price

Post-split price is the share price of a stock after the company has completed a stock split, adjusting the price proportionately to the split ratio.

Dividend Payout Ratio

A financial ratio that shows the percentage of earnings a company pays to its shareholders in the form of dividends, providing insight into the proportion of earnings distributed versus retained.