An Increase in Input Prices Will Cause

question 33

Multiple Choice

An increase in input prices will cause

• A)supply to shift rightward,equilibrium price to rise,and equilibrium quantity to fall.
• B)supply to shift leftward,equilibrium price to rise,and equilibrium quantity to fall.
• C)supply to shift rightward,equilibrium price to fall,and equilibrium quantity to rise.
• D)supply to shift leftward,equilibrium price to fall ,and equilibrium quantity to rise.

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Definitions:

Rights Offering

A method companies use to raise capital, allowing current shareholders to purchase additional shares at a discounted price before they are offered to the public.

Market Price

The price at the moment for transactions involving services or assets.

Subscription Price

The price at which existing shareholders can purchase new shares of stock in a company, usually at a discount to the current market price.

Net Present Value

The contrast between the present value of money received and the present value of money spent over a duration.