There Are Three Consumers in the Market for Playing Cards

question 57

Multiple Choice

There are three consumers in the market for playing cards: Don, John, and Ron.At a price of $2 per pack, the quantities demanded by each are 3, 2, and 1, respectively.At a price of $1.50 per pack, the quantities demanded by each are 4, 5, and 3, respectively.Which of the following is true?

• A)The market demand curve for playing cards does not obey the law of demand.
• B)The price decrease causes the quantity demanded in this market to increase by 6.
• C)The price decrease causes John's demand curve to shift the most.
• D)At a price of $1 per pack, the quantity demanded in this market must be 20.
• E)Don's behavior does not obey the law of demand.

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Definitions:

Investment-Demand

The relationship showing the amounts of investment goods purchased at different rates of interest.

Expected Rate of Return

The anticipated profit or loss on an investment, often based on historical data or statistical analysis.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Monetary Authorities

Institutions, typically government bodies or central banks, responsible for controlling a country's money supply and implementing monetary policy.