A Decrease in Demand for a Good Could Be Caused

question 5

Multiple Choice

A decrease in demand for a good could be caused by:

• A)a decrease in the price of the good.
• B)a decrease in the price of a complement of the good.
• C)a technological advancement that decreases the cost of production of the good.
• D)a decrease in the price of a substitute of the good.
• E)an increase in the income of the consumers of the good.

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Definitions:

Annual Coupon

The yearly interest paid to bondholders, typically expressed as a percentage of the bond's face value.

Market Yield

The annual income returned on an investment divided by its current market price.

Interest Rate Risk

The potential for loss due to a change in interest rates affecting investment values or borrowing costs.

Time To Maturity

The remaining life of a debt instrument, at the end of which the principal is usually repaid.