How Is the Demand for a Product Defined

question 57

Multiple Choice

How is the demand for a product defined?  

• A) as the amount that buyers purchase in the market 
• B) as the amount that buyers are willing to purchase at a given price 
• C) as the amount that sellers are willing to sell at a particular price 
• D) as the amount that buyers are willing and able to purchase at alternative prices

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Definitions:

Fair Market Value

The price at which property would sell on the open market between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.

Capital Loss

A financial loss that occurs when the selling price of an investment is less than its purchase price.

Gift Tax

A federal tax on the transfer of property by gift from one individual to another, where the giver receives nothing or less than full value in return.

Assumed Mortgage

When a property buyer takes over the seller's existing mortgage, it is referred to as an assumed mortgage.