Economists Use the Term Demand to Refer To

question 2

Multiple Choice

Economists use the term demand to refer to:

• A)a particular price-quantity combination on a demand curve
• B)the total amount spent on a particular product over a given time period
• C)the amount of a product that consumers are willing to purchase at a certain price
• D)the relationship between the various possible prices of a product and the quantities that consumers are willing to purchase at each price
• E)the price charged to consumers to purchase a given quantity of a product

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price within a specified time period.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time period.

Fixed Price

A set price for a product or service that does not change under normal conditions.

Derivative Security

A financial instrument whose value is based on an underlying asset, index, or other financial instruments.