In Which Statement Is the Term "Demand" Used Correctly? (1)An

question 117

Multiple Choice

In which statement is the term "demand" used correctly? (1) An increase in the price of copper will lead to a decrease in the demand for copper.(2) An increase in the price of copper will lead to an increase in the demand for aluminum (a substitute for copper) .

• A)neither statement
• B)the first statement only
• C)the second statement only
• D)both statements
• E)more information is needed

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Definitions:

Market Efficiency

A concept that describes the extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher-than-normal returns.

Well-Organized Markets

Financial markets that are structured in a manner to ensure transparency, fair trading practices, and efficiency.

Semi-Strong Efficiency

A form of market efficiency where asset prices fully reflect all publicly available information.

Public Information

Data or knowledge that is available to the general public, not restricted by confidentiality or privacy laws.