Which of the Following Does the Law of Demand Specifically

question 52

Multiple Choice

Which of the following does the law of demand specifically imply?

• A) If the product price increases, quantity demanded will decrease.
• B) If consumer income increases, quantity demanded will increase.
• C) If the product price increases, quantity demanded will increase.
• D) If consumer income increases, quantity demanded will decrease.
• E) If supply increases, demand will increase.

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Definitions:

Forward Exchange Contract

A financial contract between two parties to exchange currencies at a predetermined future date and rate, used to hedge against foreign exchange risk.

Premium

The amount paid for a product or service above its nominal value, often related to insurance or bonds.

Discount

A reduction from the usual cost of something, or the amount by which an asset's book value is reduced for accounting purposes.

Inception Date

The date on which an agreement, contract, or financial instrument becomes effective.