A Shift of the Supply Curve of DVDs Raises the Price

question 182

Multiple Choice

A shift of the supply curve of DVDs raises the price of a DVD from $9.50 to $10.50 a DVD and reduces the quantity demanded from 41 million to 39 million DVDs a month. The price elasticity of demand for DVDs is

• A) 2 million DVDs a month per dollar.
• B) $1 per 2 million barrels a day.
• C) 0.5.
• D) 2.0.

Understand the significance and definition of the London Interbank Offer Rate (LIBOR).

Define and understand the purpose of Note Issuance Facilities (NIF) in international finance.

Comprehend the concept of forward exchange rates.

Understand interest rate parity (IRP) and its applications in financial markets.