Everything Else Remaining Unchanged, an Increase in the Supply of Security

question 43

Multiple Choice

Everything else remaining unchanged, an increase in the supply of security A and an increase in the demand for security B causes the price of security A to_____ and the price of security B to_____ .

• A)fall; fall
• B)fall; rise
• C)rise; fall
• D)rise; rise

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Definitions:

Retailers

Intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products.

Ultimate Consumers

The end-users or buyers who purchase products or services for personal use and not for manufacturing or resale purposes.