Refer to the Above Table

question 134

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { Quantity Demanded } & \text { Price } & \text { Quantity Supplied } \\\hline 5 & \$ 7 & 9 \\\hline 6 & 6 & 8 \\\hline 7 & 5 & 7 \\\hline 8 & 4 & 6 \\\hline 9 & 3 & 5 \\\hline 10 & 2 & 4 \\\hline 11 & 1 & 3 \\\hline\end{array}$$ Refer to the above table. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be?

• A) $3 and 5 units
• B) $4 and 4 units
• C) $5 and 5 units
• D) $6 and 6 units

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Definitions:

Annual Yield

The return on an investment over a one-year period, expressed as a percentage of the investment’s initial cost.

Market Rate

The current price or interest rate at which goods, services, or financial instruments are traded in a competitive marketplace.

Present Value Tables

Tables that show the present value of cash to be received in the future, discounted at various interest rates.

Par Value

The nominal or face value of a bond, share, or other financial instrument, as stated by the issuer.