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

question 62

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

-The maturity date of a bond is:

• A)the date on which the lender receives the coupon from the borrower.
• B)the date on which the borrower takes the loan.
• C)the date on which the bond is bought by an individual from the firm.
• D)the specified time at which the borrower repays the loan.
• E)the specified time at which the borrower sells the bond held by him to someone else.

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Definitions:

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved in a market.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change in response to price changes.

Deadweight Loss

An economic inefficiency that occurs when the total welfare in a market is not maximized, resulting from distortions such as taxes, subsidies, or monopolies.

Excise Tax

A tax imposed on specific goods, services, or activities, often included in the price of products like tobacco, alcohol, and fuel, designed to discourage their use or generate revenue.