We Observe a Rise in the Price of Service a and an Increase

question 109

Multiple Choice

We observe a rise in the price of service A and an increase in the quantity of service A bought and sold. Which is a likely explanation?

• A) The law of demand is violated.
• B) The demand for A decreased.
• C) The demand for A increased.
• D) The supply of A increased.
• E) The supply of A decreased.

---

Definitions:

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.

Dividends Per Share

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Independent Auditor's Report

A formal opinion or disclaimer, issued by an independent external auditor as a result of an audit or evaluation of an entity's financial statements.

Financial Statements

Reports that summarize a company’s financial performance, including the balance sheet, income statement, and cash flow statement.