The Table Given Below Reports the Quantity Demanded of a Good

question 9

Multiple Choice

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?

• A)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase.
• B)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease.
• C)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase.
• D)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease.
• E)The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.

---

Definitions:

Cyclical Stock

A stock whose price is affected by macroeconomic or systematic changes in the overall economy.

Countercyclical Stock

Stocks that tend to move inversely to the economic cycle; they perform well when the economy is in a downturn.

Portfolio Expected Return

The portfolio expected return is the weighted average of the expected returns of the assets within a portfolio.

Standard Deviation

A measure of the dispersion or variability around the mean of a set of data, used in finance to quantify the risk of investment returns.