The Change in Price That Results from a Rightward Shift

question 106

Multiple Choice

The change in price that results from a rightward shift in demand will be greater if

• A) the supply curve is horizontal than if the supply curve is upward sloping.
• B) the supply curve is relatively steep than if the supply curve is relatively flat.
• C) the supply curve is upward sloping than if the supply curve is vertical.
• D) the supply curve is horizontal than if the supply curve is vertical.

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Definitions:

Current Price

The latest market price at which an asset or service is traded.

Effective Annual Yield

The annual return on an investment, accounting for the effect of compounding interest over a period of time.

Interest Payment

A payment made to a lender by a borrower as compensation for the use of borrowed money, typically expressed as an annual percentage of the loan balance.