If the Quantity Demanded for Cars Is Lower Than the Quantity

question 81

Multiple Choice

If the quantity demanded for cars is lower than the quantity supplied, we can expect that:

• A) the price of cars will increase.
• B) the price of cars will decrease.
• C) the price of cars will not change.
• D) car manufacturers will increase their production of cars.

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Definitions:

Negotiable Instruments

Substitutes for money that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit.

Bills of Exchange Act

Legislation that regulates the creation and the use of bills of exchange, a type of negotiable instrument.

Holder in Due Course

A legal term describing someone who has obtained a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Device

An apparatus or piece of equipment that has a defect or a malfunction.