Jamal Needed a New Cell Phone but Didn't Have a Lot

question 146

Multiple Choice

Jamal needed a new cell phone but didn't have a lot of money. He went to TechBargains.com and typed "cheap cell phones" into the search bar. As he was scrolling through his options, he noticed very few brands under $50 and far more brands selling for $100 or more. Which of the following statements best describes what Jamal has observed?

• A) Generally speaking, the higher the price point, the greater the demand.
• B) Generally speaking, the higher the price point, the more supply is available.
• C) In general, as price goes down, demand goes up.
• D) In general, as price goes down, supply goes up.

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Definitions:

Foreign Currency Approach

A method used in global finance and investment analysis that involves evaluating investments or financial statements in a foreign currency.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Pakistani Rupees

the official currency of Pakistan, symbolized as PKR.

Yankee Bond

A bond issued by a foreign entity in the United States, denominated in U.S. dollars, and subject to American securities laws.