The Current Demand for a Good Would Decrease If

question 245

Multiple Choice

The current demand for a good would decrease if

• A) the price of a complementary good rose.
• B) the price of a substitute good rose.
• C) consumers suddenly believed the price of the good would be sharply higher in the future.
• D) consumer income increased.

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Definitions:

Systemic Risks

Risks that can cause a collapse of an entire financial system or market, as opposed to risks associated with individual entities.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Technical Indicator

A mathematical calculation based on historical price, volume, or open interest information that aims to forecast financial market direction.

Variance Inflation Factor

A measure used in statistics to identify the degree of multicollinearity in a set of regression variables.