When Economists Say the Quantity Demanded of a Product Has

question 18

Multiple Choice

When economists say the quantity demanded of a product has increased, they mean the

• A) demand curve has shifted to the left.
• B) demand curve has shifted to the right.
• C) price of the product has fallen, and consequently, consumers are buying more of it.
• D) price of the product has risen, and consequently, consumers are buying less of it.

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Definitions:

Credit Policy

A credit policy is a set of guidelines that a company follows to determine credit terms and conditions for its customers.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in another's best interest, such as between shareholders and company executives.

Borrow Money

Borrowing money involves receiving funds from another party, usually a bank or financial institution, under the agreement to pay back the principal amount along with interest over a set period.

Selling Prices

The amount of money charged for a product or service, or the sum the consumer must pay to acquire the product.