A Decrease in Demand and an Increase in Supply Will

question 16

Multiple Choice

A decrease in demand and an increase in supply will lead to

• A) unambiguous increases in both price and quantity.
• B) unambiguous decreases in both price and quantity.
• C) an unambiguous decrease in price, but the effect on quantity is indeterminate.
• D) an unambiguous decrease in quantity, but the effect on price is indeterminate.

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Definitions:

Security Interest

A legal claim or lien on collateral that gives a lender the right to take property if a borrower defaults on their obligations.

Perfection

In legal and financial contexts, refinement is the process of securing an interest in collateral against third parties, often through public registration.

Security Agreement

A legal document that provides a lender a security interest in specified assets of the borrower as collateral for a loan.

Filing

The process of submitting documents to a specified authority or organization for official review or record-keeping.