In Recent Years, the Price of Smartphones Has Fallen, While

question 400

Multiple Choice

In recent years, the price of smartphones has fallen, while the quantity exchanged of smartphones has risen. We can conclude that this is most likely a result of

• A) a decrease in supply while demand remained constant.
• B) an increase in demand while supply remained constant.
• C) an increase in demand that exceeded an increase in supply.
• D) an increase in supply that exceeded an increase in demand.

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Definitions:

Principal

The initial sum of money placed in an investment or lent out, excluding any interest or earnings.

Treasury Bill

Short-term government securities issued at a discount from the par value and mature without additional interest.

Simple Interest

Interest computed solely on the initial sum, or on the unpaid balance of that initial sum.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment cost.