Table 3-2 -Refer to Table 3-2.The Table Above Shows the Demand Schedules

question 86

Multiple Choice

Table 3-2

-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market.If the price of caviar rises from $65 to $75, the market quantity demanded would

• A)decrease by 36 oz.
• B)increase by 52 oz.
• C)increase by 36 oz.
• D)decrease by 52 oz.

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Definitions:

Interest Rates

The amount charged by lenders as a percentage of the principal, typically expressed as an annual percentage of the total amount loaned.

Velocity of Money

The rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period of time.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity, the price level, and the volume of transactions in an economy.

Inflation

The speed at which prices for products and services increase, leading to a decline in buying power.