In Which of the Following Statements Are the Terms "Demand

question 254

Multiple Choice

In which of the following statements are the terms "demand" and "quantity demanded" used correctly?

• A) When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell.
• B) When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell.
• C) When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell.
• D) None of these statements use the terms correctly.

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Definitions:

Investment

Allocation of resources, typically money, with the expectation of generating an income or profit.

Volatile

Characteristic of a substance or entity that is likely to change rapidly and unpredictably, especially for the worse.

Historical Returns

The past financial performance of an investment, used to evaluate and compare the potential for future returns over time, drawing from historical data.

Semi-Strong Form

The semi-strong form of market efficiency hypothesizes that stock prices incorporate all publicly available information, suggesting that investors cannot earn excess returns through fundamental analysis.