A Market Demand Curve

question 208

Multiple Choice

A market demand curve:

• A) is the sum of the demand curves of all the individuals in a particular market.
• B) is determined by the demand of those who purchase in quantity.
• C) is always horizontal.
• D) cannot be estimated.
• E) never includes demand by the government.

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Definitions:

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied once per year.

Compounded Semi-Annually

The process of calculating interest on a principal sum and its accumulated interest at two intervals within the year.

Effective Annual Rate

The interest rate on a loan or financial product restated from a nominal rate to an annual rate, taking compounding into account.

Compounded Daily

The process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, on a daily basis.