With a Given Upward- Sloping Supply Curve for Sirloin Steak

question 67

Multiple Choice

With a given upward- sloping supply curve for sirloin steak (a normal good) , a rise in household income will cause the

• A)equilibrium price to decrease and equilibrium quantity of sirloin steak to increase.
• B)equilibrium price and equilibrium quantity of sirloin steak to both increase.
• C)equilibrium price and equilibrium quantity of sirloin steak to both decrease.
• D)equilibrium price to increase and equilibrium quantity of sirloin steak to decrease.
• E)equilibrium price to increase and equilibrium quantity of sirloin steak to remain constant.

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Definitions:

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period of time.

Issuing Company

A company that offers its securities for sale to the public or to private investors.

Indenture

A formal legal agreement, contract, or document, especially one outlining the terms of a bond or other financial debt instrument.

Debenture

A type of debt instrument that is not secured by physical assets or collateral.