In the Following Question You Are Asked to Determine,other Things

question 58

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. An increase in the tastes and preferences for X will:

• A) increase S,decrease P,and increase Q.
• B) decrease S,decrease P,and decrease Q.
• C) increase D,increase P,and increase Q.
• D) decrease D,decrease P,and decrease Q.

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Definitions:

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.

Marked Down

Refers to a reduction in the selling price of goods or services, typically to clear inventory or to boost sales.