Rising Prices for a Service

question 156

Multiple Choice

Rising prices for a service

• A) create incentives for consumers to buy more, switching from more expensive substitutes.
• B) eliminate surpluses.
• C) create incentives for businesses to produce less.
• D) increase supply of the service.
• E) do none of the above.

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Definitions:

Dividend Policy

A company's approach to distributing profits to its shareholders, determining the size and timing of dividend payments.

Common Stock

A type of equity investment representing ownership in a corporation, with holders entitled to vote on corporate issues and receive dividends.

Discretionary

Refers to expenses or investments that are not essential for the operation of a home or business and can be reduced or eliminated if necessary.

Dividends

Disbursements from a corporation to its shareholders, typically originating from the firm's earnings.