An Ask Price of 98

question 392

Multiple Choice

An ask price of 98.73 means that you can _____ a $1,000 face value bond for _____.

• A) Buy; $98.73
• B) Buy; $987.30
• C) Sell; $98.73
• D) Sell; $987.30
• E) Swap; $98.73

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Definitions:

Economists

Professionals who study, develop, and apply theories and principles of economics to understand how economies work and to analyze economic policies.

Determinants

Factors that cause changes in the behavior of individuals, systems, or processes, often studied to understand cause-and-effect relationships.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.