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Suppose the Number of Buyers in a Market Decreases

question 48

Essay

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?


Definitions:

Current Yield

A bond's annual interest payment divided by its current price, indicating the return an investor would expect if the bond is held for a year.

Premium Bonds

Government or corporate bonds that are sold at a price above their face value due to their high credit quality or favorable interest yield.

Discount Bonds

Bonds sold for less than their face value, offering investors the difference as profit upon maturity.

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