If Both Matches and Automobile Prices Increase by 10 Percent

question 190

Multiple Choice

If both matches and automobile prices increase by 10 percent, consumers will likely buy

• A)fewer matches and approximately the same quantity of automobiles.
• B)approximately the same quantity of matches and fewer automobiles.
• C)fewer matches and fewer automobiles.
• D)approximately the same quantity of both matches and automobiles.

---

Definitions:

Simple Interest

A method of calculating interest whereby it is applied only to the principal amount, not including any previously earned interest.

Deposit Maturity

The end of a deposit term at which point the deposited funds plus any accrued interest are available to the account holder.

Deposit Date

The specific day on which funds are placed into an account.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and the interest.