Use the Following to Answer Question

question 115

Multiple Choice

Use the following to answer question:
-(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market.If the rental price of Blu-ray discs rises from $5 to $7:

• A)demand will decrease from 50 to 30 rentals per weekend.
• B)the quantity demanded will decrease from 50 to 30 rentals per weekend.
• C)supply will increase from 50 to 70 rentals per weekend.
• D)the quantity supplied will increase from 50 to 60 rentals per weekend.

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Definitions:

Real Interest Rate

The interest rate corrected for the effects of inflation.

Price Level

A measure of the average prices of goods and services in an economy at a given time period.

Real Wealth

The value of an individual's or entity's assets, taking into account the effects of inflation on purchasing power.

Liquidity Preference

The desire to hold cash or easily convertible assets rather than investments that might be harder to convert into cash.