Even When the Demand for One Good Is High,the Price

question 49

Multiple Choice

Even when the demand for one good is high,the price of the good is also affected by supply.The textbook illustrates this by comparing the price of two items that were auctioned on the same day.Which of the following describes the results of the auction?

• A)A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth.
• B)A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith.
• C)A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald.
• D)A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln.

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Definitions:

Knowledgeable Investors

Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.

General Solicitation

The act of publicly advertising an investment opportunity to potential investors.

Business Combination

The merger or joining of two or more companies into one entity, often to expand market share or diversify offerings.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.