The Figure Given Below Shows the Demand [D and D']

question 80

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-If the par value of a bond is $200, and the bid price of the bond is $90, it implies that:

• A)the bond is sold at $110.
• B)the bond was bought at $110.
• C)the bond is trading at a discount of 10 percent of its par value.
• D)the bond is trading at 45 percent of its par value.
• E)the bond is trading at a premium of 15 percent.

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Definitions:

Price Discrimination

A pricing approach in which the same provider sells identical or nearly identical products or services for varying prices across different markets.

Monopolists

Individuals or firms that are the sole providers of a unique product or service in a market, with the power to control prices and exclude competitors.

Price Discrimination

A pricing strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.