After 2009, the Price of Tablets Fell Each Year and Manufacturers

question 266

Multiple Choice

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

• A) "law of supply" does not apply to companies in the "high-tech" sector of the economy.
• B) "law of demand" does not apply to customers in the "high-tech" sector of the economy.
• C) supply curve of tablets shifted rightward.
• D) demand curve for tablets shifted leftward.

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Definitions:

Equal Payments

Regularly scheduled payments that are the same in amount over the term of the loan or investment.

Loan

A loan is a sum of money borrowed that is expected to be paid back with interest.

Compounded Monthly

Describes interest on an investment or loan that is calculated and added to the principal balance monthly, allowing for the interest to earn interest.

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal amount along with a fixed rate of interest at the end of the investment term.