Nico Likes to Go Shopping

question 11

Multiple Choice

Nico likes to go shopping.Every time he goes to a new store,he fills out an application for a store credit card so that he can get a 20 percent discount on his purchases that day.Yesterday,when he was trying to buy a new car,the dealer turned down his credit request.Nico can't understand why,because he thought he had good credit.If you looked at his credit report,what is the most likely reason he was denied credit?

• A)Nine years ago,a lender referred his debt to a collection agency.
• B)He has only worked for his current employer for nine months.
• C)He has too many recent inquiries on his credit report.
• D)There is not enough information available to answer this question.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded, leading to a stable market condition.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where the supply and demand curves intersect.

Supply Decreases

A situation where the quantity of a good or service that producers are willing and able to offer for sale at a given price is reduced.

Substitute Good

A product or service that can be used in place of another to satisfy consumer demand, offering an alternative choice.