Figure 4-5 -Refer to Figure 4-5.Which of the Following Would Cause the Would

question 88

Multiple Choice

Figure 4-5
-Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

• A)an increase in the price of DVDs
• B)a decrease in the price of DVD players
• C)a change in consumer preferences toward watching movies in movie theaters rather than at home
• D)an expectation by buyers that their incomes will increase in the very near future

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Definitions:

Preferred Stock

Stock with dividend priority over common stock, normally with a fixed dividend rate, often without voting rights.

Common Stock Dividends

Dividends that are paid to holders of a company's common stock, often from the company's profits.

Dividend Increases

An action by a company to increase the amount of dividends paid out to shareholders, usually as a result of increased profitability.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, as a reward for investing their capital.