Jennifer Learns That the Price of CDs Will Be Going

question 244

Multiple Choice

Jennifer learns that the price of CDs will be going up 10 percent next week.She usually buys three CDs per week.What happens to Jennifer's demand for CDs this week?

• A)It does not change because only quantity demanded changes when price changes.
• B)It increases because the price will be lower next week.
• C)It decreases because the price will be higher next week.
• D)It increases because the price will be higher next week.
• E)It decreases because the price will be lower next week.

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Definitions:

Insured's Interest

The stake or financial interest that an insured person has in the safety and preservation of the covered object against loss or damage.

Fire Insurance Policy

A contract between an insurer and policyholder that provides coverage against fire damage to property or goods.

Transferring Risk

The act of shifting the potential for loss or damage from one party to another, often achieved through insurance contracts or hedging.

Shifting Liability

The act of transferring the responsibility for a loss or damage from one party to another.