Refer to the Table,which Shows the Number of MP3 Downloads

question 42

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Price } & \begin{array} { l } \text { Quantity } \\\text { Demanded }\end{array} \\\hline \$ 0 & 1,000 \\\hline \$ 1 & 400 \\\hline \$ 2 & 200 \\\hline \$ 3 & 100 \\\hline \$ 4 & 25 \\\hline\end{array}$$ Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.What would happen to the quantity of MP3s demanded at a price of $2 if the university's enrollment were to increase significantly?

• A) The quantity demanded would fall below 200 because there would be more students competing for MP3s.
• B) The quantity demanded would remain at 200 because the number of buyers in a market does not impact the market demand schedule.
• C) The quantity demanded would increase above 200 because the market demand schedule is the sum of individual demand schedules, and more students mean more individual demand schedules for MP3s.
• D) The quantity demanded would rise to exactly 400 because every number in the table would simply shift down one row.

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Definitions:

Intercompany Sales

Transactions involving the exchange of goods or services between subsidiaries of the same parent company.

After-Tax Dollar Value

The net value of an investment, income, or transaction after accounting for the effects of income taxes.

Realized Profits

The gains earned and received from the sale of assets or investments.

Tax Rate

The rate at which a person or company is taxed by the state.