A Decrease in the Demand for Incandescent Light Bulbs Due

question 167

Multiple Choice

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

• A)a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price.
• B)a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity.
• C)a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.
• D)a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.

---

Definitions:

Operating Lease

A leasing agreement allowing a lessee to use an asset without owning it, typically with shorter terms than a capital lease.

Ownership

The legal right or interest in something, often involving assets like property, businesses, or investments.

Contract Rate

The agreed-upon interest rate specified in a contract, such as in loans, leases, or bonds.

Market Rate

The prevailing interest rate available in the marketplace for securities of similar risk and maturity to a bond.