In Which of the Following Cases Will the Total Spending

question 208

Multiple Choice

In which of the following cases will the total spending on a good decrease?

• A) Demand is inelastic, and price increases.
• B) Demand is elastic, and price increases.
• C) Demand is elastic, and price decreases.
• D) Demand is of unit elasticity, and price decreases.

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Definitions:

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitling them to receive fixed interest payments.

Retractable

A bond (or preferred shares) with a retractable feature allows the holder to sell the bond (or preferred shares) back to the issuer before maturity at a preset price.

Holdings

Holdings refer to the securities and assets owned by an investor or investment fund.

Sinking Funds

Sinking funds are reserve accounts set aside by an organization for the purpose of repaying debt or replacing assets in the future.