Assuming That Pizza Is a Normal Good, If Students' Income

question 122

Multiple Choice

Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:

• A) a reduction in the demand for pizza.
• B) an increase in the quantity of pizza demanded.
• C) no change in the demand for pizza.
• D) an increase in the demand for pizza.

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Definitions:

Beta

A gauge of the systematic risk or volatility of a security or a portfolio relative to the overall market.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Market Neutral Bets

Investment strategies aiming to profit from both increasing and decreasing prices in one or more markets, whilst minimizing exposure to market risk.

Considerable Leverage

The use of borrowed capital to increase the potential return of an investment.