-Using the Data in the Above Table,
A) an Increase

question 269

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Quantity } & \text { Price } \\\hline & 50 \\\hline & 40 \\\hline 16 & 30 \\\hline 24 & 20 \\\hline 32 & 10 \\\hline 36 & 5 \\\hline\end{array}$$
-Using the data in the above table,

• A) an increase in price is likely to cause an increase in quantity.
• B) the variables quantity and price are neither positively nor negatively related.
• C) the variables quantity and price are negatively related.
• D) the variables quantity and price are positively related.

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Definitions:

Private Demand

The desire and willingness of individuals and entities to purchase goods and services in a free market.

Crowding Out

A situation where increased government spending leads to reduced investment in the private sector, often due to higher interest rates.

Multiplier

A factor by which an initial change in aggregate spending will alter total economic output through a series of induced spending.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.