In the Figure Above,if Point "A" Represents the Original Equilibrium

question 284

Multiple Choice

In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

• A) there has been an increase in supply.
• B) there has been an increase in demand.
• C) there has been a change in the quantity supplied and no change in supply.
• D) Both answers B and C are correct.
• E) Both answers A and B are correct.

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Definitions:

Simple Rate

A simple interest rate is calculated only on the principal amount of a loan or investment, without compounding over time.

Interest Charged

The amount of money charged by a lender to a borrower for the use of borrowed funds, expressed as a percentage of the principal.

Investment Matured

An investment matured refers to when an investment reaches its due date and the principal amount is returned to the investor along with any final interest payments.

Interest Amount

The sum paid or charged for the use of money or for borrowing money.