Suppose That the Equilibrium Price of Pickles Falls While the Equilibrium

question 181

Multiple Choice

Suppose that the equilibrium price of pickles falls while the equilibrium quantity rises. The most likely explanation for these changes is:

• A)a decrease in demand for pickles.
• B)an increase in demand for pickles.
• C)a decrease in the supply of pickles.
• D)an increase in the supply of pickles.

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Definitions:

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.

Asset Portfolios

Collections of various types of investments held by individuals or institutions to diversify risk and achieve financial goals.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, expressed in years.