When Supply Decreases and Demand Does Not Change, the Equilibrium

question 116

Multiple Choice

When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________.

• A) increases; rises
• B) decreases; falls
• C) increases; falls
• D) decreases; rises

Grasp the impact of coupon rates and face values on bond valuation.

Recognize the significance of call, sinking fund, and convertible features in bonds.

Understand the reasons behind bond ratings and their impact on investor perceptions and bond pricing.

Analyze the term structure of interest rates and its components.

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