If the Demand for a Consumer Good Decreases, the Demand

question 93

Multiple Choice

If the demand for a consumer good decreases, the demand for resources required to make the good will

• A) increase.
• B) remain the same, but the quantity demanded will increase.
• C) decrease.
• D) increase or decrease depending on whether the demand for the product is elastic or inelastic.

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Definitions:

Perpetuity

A type of annuity that pays a fixed amount of money to an individual indefinitely, without a termination date.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the rate earned on savings or investments.

Perpetual Payments

Payments that continue indefinitely, often associated with perpetuities in finance.

Annual Perpetuity

A type of financial annuity that makes consistent annual payments to the holder indefinitely.