The Financing Rate on the Car You Are Leasing Is

question 6

Multiple Choice

The financing rate on the car you are leasing is called the

• A) money factor.
• B) capitalized cost.
• C) residual value.
• D) purchase option.
• E) capitalized cost reduction.

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Definitions:

Demand Curve

A visual depiction that illustrates the correlation between a product's price and the amount consumers want to buy.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Total Utility

The total satisfaction or benefit obtained from consuming a given quantity of goods or services.

Marginal Utility

The added satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.