Many Consumer Items Eventually Go Out of Style,and Because Fewer

question 8

Multiple Choice

Many consumer items eventually go out of style,and because fewer people want these items,demand for them drops.When this happens,we usually see production of these items stop.What happens to the equilibrium price and equilibrium quantity in a market like this?

• A) The equilibrium price goes up and equilibrium quantity goes up.
• B) The equilibrium price is indeterminate and equilibrium quantity goes up.
• C) The equilibrium price goes down and equilibrium quantity is indeterminate.
• D) The equilibrium price is indeterminate and equilibrium quantity goes down.
• E) The equilibrium price goes up and equilibrium quantity is indeterminate.

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Definitions:

Right of Subrogation

A legal right that allows an insurer to pursue a third party that caused an insurance loss to the insured, aiming to recover the amount of the claim paid to the insured.

Right to Reimbursement

The entitlement of an individual or entity to be repaid or compensated for costs, expenses, or losses incurred on behalf of another.

Foreclosure

The legal process by which a lender takes control of a property when the borrower fails to make mortgage payments.

Lienholder

A person or entity that has a legal right or claim on another's property until a debt or duty owed by the property owner is satisfied.