An Increase in Demand Shifts the Demand Curve

question 194

Multiple Choice

An increase in demand shifts the demand curve:

• A) up and to the right.
• B) down and to the right.
• C) up and to the left.
• D) down and to the left.

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Definitions:

Open Market

A marketplace that is accessible to all buyers and sellers where prices are determined by supply and demand.

Stated Rate

The nominal interest rate specified in the contractual terms of a financial instrument such as a bond.

Market Rate

The prevailing interest rate available in the marketplace for securities, loans, and deposits.

A Discount

A reduction applied to the normal selling price of a product or service, typically used as a promotional strategy or to incentivize early payment.