Refer to the Graphs Shown

question 11

Multiple Choice

Refer to the graphs shown. Suppose the price of a good that is a substitute in both consumption and production for the good depicted in the graph falls. The expected shifts in supply and demand are shown in:

• A) a.
• B) b.
• C) c.
• D) d.

---

Definitions:

Reacquisition

The process of a company buying back its own shares or bonds from investors.

Refunding

The process of replacing an old debt with a new one, usually with better terms, such as a lower interest rate.

Old Issue

A topic or problem that has been present or discussed for a long time.

New Bond Issue

The process of offering new bonds to investors for the first time to raise capital for the issuer.