The Table Given Below Reports the Quantity Demanded of a Good

question 21

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

-Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?

• A)The onset of summer brings about an increase in the temperature.
• B)The price of frozen yogurt that is sold at the store is reduced by 5 percent.
• C)A new ice cream flavor is introduced at the store.
• D)The store introduces a limited period offer of 20 percent off on the price of ice cream.
• E)The income of the store's consumers increases.

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Definitions:

Purchase Price

The amount paid to acquire an asset or service.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Strike Price

The price at which the holder of an option can execute the contract to buy (call) or sell (put) the underlying asset.

Stock Price

The current price at which a single share of a company's stock can be bought or sold in the financial markets.