A Demand Curve Indicates That

question 40

Multiple Choice

A demand curve indicates that:

• A) the quantity demanded of a good is higher when its price is higher.
• B) the quantity demanded of a good is higher when its price is lower.
• C) the demand for a good is higher when its price is lower.
• D) the demand for a good is higher when its price is higher.

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Definitions:

Suretyship Contract

An agreement whereby a party (surety) guarantees the performance of an obligation by another party (principal) to a third party (obligee).

Primarily Liable

The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.

Secondarily Liable

Refers to a party who is indirectly responsible for a debt or obligation, where primary liability lies with another party, but the secondary party may be called upon to fulfill the obligation if the primary fails to do so.

Collateral

Assets that are pledged as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay the loan as agreed.