Exhibit 1A-6 Straight Line Straight Line A-D in Exhibit

question 11

Multiple Choice

Exhibit 1A-6 Straight line Straight line A-D in Exhibit 1A-6 shows that:

• A)increasing value for X will increase the value of Y.
• B)increasing value for X will decrease the value of Y.
• C)increasing values for X does not affect the value of Y.
• D)all of these.

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Definitions:

Demand

The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.

Supply

The total amount of a product or service available for purchase at any given price point in a market.

Purchasing Power Parity

A theory in economics that suggests that in the absence of transaction costs and other barriers, identical goods should have the same price in different countries when prices are expressed in a common currency.

Prices

Monetary values assigned to products and services which are determined by the interaction of supply and demand in the market.