Refer to the Information Provided in Figure 3

question 6

Multiple Choice

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12
-Refer to Figure 3.12 The market is initially in equilibrium at Point A. If demand shifts from D1 to D2, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

• A) $3.00; 250
• B) $6.00; 250
• C) $4.00; 350
• D) $4.00; 150

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Definitions:

Reissued

Refers to items or securities that are sold or distributed again after being previously issued.

Treasury Stock

Stocks that were initially released and then bought back by the company that issued them, decreasing the number of available shares in the market.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

Stock Dividend

A payment to shareholders in the form of additional shares rather than cash, reflecting a company's earnings.