When an Economist Says That the Demand for a Product

question 173

Multiple Choice

When an economist says that the demand for a product has increased, this means that

• A) consumers are now willing to purchase more of this product at each possible price.
• B) the product has become particularly scarce for some reason.
• C) product price has fallen and, as a consequence, consumers are buying a larger quantity of the product.
• D) the demand curve has shifted to the left.

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Definitions:

Interest Rate

The amount charged on top of the principal by lenders to borrowers, usually expressed as an annual percentage of the loan.

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.