Figure 2.3.1 -The Effect of the September 11 Attacks on the World

question 111

Multiple Choice

Figure 2.3.1
-The effect of the September 11 attacks on the World Trade Center on the market for office space in downtown Manhattan was that both the equilibrium price and the equilibrium quantity fell. What is the most likely explanation for this?

• A) Supply and demand both shifted left, and the magnitude of the demand shift was greater.
• B) Supply and demand both shifted left, and the magnitude of the supply shift was greater.
• C) Supply shifted left, demand shifted right, and the magnitude of the demand shift was greater.
• D) Supply shifted left, demand shifted right, and the magnitude of the supply shift was greater.

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Definitions:

Door-to-Door Sales

The direct selling of goods or services to consumers at their homes or places of residence.

Abuses

The improper use or treatment of someone or something, often to unfairly or improperly gain benefit.

Cooling-Off Period

A statutorily defined period during which purchasers in door-to-door sales may change their minds and rescind a contract.

Bill of Exchange

A written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.