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A Decrease in Demand with No Change in Supply Will

question 126

Multiple Choice

A decrease in demand with no change in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.


Definitions:

Risk Averse

The preference to avoid uncertainty and potential losses in decision-making, favoring safer options even if they offer lower potential returns.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Insurance

A financial product that provides compensation for specific losses or damages in exchange for regular payments, known as premiums.

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