In a Competitive Market,a Decrease in Consumer Demand Leads to

question 93

Multiple Choice

In a competitive market,a decrease in consumer demand leads to

• A)a decrease in output
• B)an increase in output
• C)economic profits
• D)higher prices
• E)technological innovation

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Definitions:

Compounded Quarterly

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Compounded Semi-Annually

Interest that is computed and added to the principal twice a year, allowing the investment to grow more rapidly.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth.

Deposits

Money placed into a financial institution for safekeeping, which may earn interest over time.