-The Above Figure Shows the Market for Laptops

question 291

Multiple Choice

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

• A) an increase in the cost of hard drives
• B) an increase in the productivity of the workers manufacturing laptops
• C) a decrease in the price of laptops
• D) an increase in the price of laptops
• E) an increase in the number of laptop manufactures and sellers

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder equity, indicating how effectively management is using a company’s assets to create profits.

Earnings Retention Ratio

The earnings retention ratio, also known as the plowback ratio, measures the percentage of net income that is retained in the company rather than being paid out as dividends.

Market Capitalization Rate

Market capitalization rate, or "cap rate", is used in evaluating and comparing the expected returns on investments in the equity market, reflecting the cost of capital for a company.

P/E Ratio

The price-to-earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share.