If the Price for a Product Increases, the Demand for the Complementary

question 46

Multiple Choice

If the price for a product increases, the demand for the complementary product will

• A)decrease.
• B)increase.
• C)stay the same.
• D)become more elastic.
• E)become more inelastic.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.