If Good Weather Conditions Result in a Larger Than Normal

question 127

Multiple Choice

If good weather conditions result in a larger than normal crop of peaches, then the

• A) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases.
• B) demand curve for peaches shifts leftward.
• C) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
• D) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
• E) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of principal.

Coupon Rate

The annual interest rate paid by a bond issuer to the bondholders, typically expressed as a percentage of the bond's face value.

Intrinsic Value

The inherent or actual value of an asset, investment, or company, based on underlying perception of its true value including all aspects of the business.

Annual

Refers to something occurring once every year.