In Which Statement(s) Is "Demand" Used Correctly? (I) "An Increase

question 243

Multiple Choice

In which statement(s) is "demand" used correctly? (I) "An increase in the price of hamburgers will reduce the demand for hamburgers."
(II) "An increase in the price of hamburgers will reduce the demand for hamburger buns."

• A) in both statements I and II
• B) in statement I only
• C) in statement II only
• D) in neither statements I nor II

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Definitions:

Supply And Demand

The relationship between the quantity of a commodity available and the desire for that commodity, determining its market price.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, commonly stated as a yearly percentage rate.

Loanable Funds

The money available for borrowing, which comes from savings and is demanded by borrowers for investment.

Usury Law

Legal regulations that cap the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.