If the Demand for an Asset Increases, Its Price Will

question 117

Multiple Choice

If the demand for an asset increases, its price will

• A) increase and the rate of return for new investors of this asset will increase.
• B) decrease and the rate of return for new investors of this asset will increase.
• C) decrease and the rate of return for new investors of this asset will decrease.
• D) increase and the rate of return for new investors of this asset will decrease.

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Definitions:

Human Combustion

A supposed phenomenon where a human body allegedly catches fire and burns as a result of internal chemical reactions, without an external source of ignition.

Percolation

The process of a liquid slowly passing through a filter or porous substance, often used in the context of water movement through soil.

Groundwater

Water stored underground in soil and crevasses, or an aquifer

Evaporation

The process by which a liquid turns into vapor, typically under the effect of heat.