If the Demand for Used Cars Decreases After the Price

question 96

Multiple Choice

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

• A) inferior goods.
• B) substitute goods.
• C) complementary goods.
• D) normal goods.
• E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.

---

Definitions:

Shareholder Votes

The mechanism by which shareholders express their opinions or make decisions on corporate matters, typically exercised at annual meetings.

Equity Ownership

Refers to the portion of a company's capital that is owned by its shareholders, representing a claim on the company's assets and earnings.

Going-private Transaction

A process by which a publicly traded company is converted into a privately owned entity.

Equity Ownership

Equity ownership denotes the holding of shares in a company, thereby providing the shareholder a claim on a portion of the corporation's assets and earnings.