If the Demand for Letters Written by Abraham Lincoln Is

question 18

Multiple Choice

If the demand for letters written by Abraham Lincoln is higher than the demand for letters written by John Wilkes Booth,what would have to be true for the market equilibrium prices for these letters to be equal?

• A)The supply of Lincoln letters would have to be less than the supply of Booth letters.
• B)The supply of Booth letters would have to be less than the supply of Lincoln letters.
• C)The supply of Lincoln letters and the supply of Booth letters would have to be equal.
• D)If the demand for Lincoln letters is greater than the demand for Booth letters,the market equilibrium price for Lincoln letters will always be greater than the market equilibrium price for Booth letters.

---

Definitions:

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Compounded Continuously

Pertains to the situation where interest is added to the principal balance of an investment, loan, etc., at an infinite number of times within a specified time period.

Balance

The equality between the sum of the debits and credits in an account, or the stability between opposing forces.

Compounded Annually

Refers to interest calculated once a year on the principal, including any previously earned interest.