Exhibit 3-3 Demand Curves

question 38

Multiple Choice

Exhibit 3-3 Demand curves
-Which of the graphs in Exhibit 3-3 depicts the effect of a decrease in the price of domestic cars on the demand for foreign cars?

• A) Graph A.
• B) Graph B.
• C) Graph C.
• D) Graph D.

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Definitions:

Constructive Notice

Legal concept indicating that a person should have known a fact because it was publicly available or recorded, even if they had no actual knowledge of it.

Collateral

An asset offered to secure a loan or other credit and subject to seizure on default.

Investment Property

Real estate property that is purchased with the intention of earning a return on investment through rental income, the future resale of the property, or both.

Stocks

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.