If the Supply of Good a Is Perfectly Elastic, a Decrease

question 42

Multiple Choice

If the supply of good A is perfectly elastic, a decrease in demand will:

• A)​reduce the equilibrium quantity traded, but leave the price unchanged.
• B)​reduce the equilibrium quantity traded, and reduce the price.
• C)​reduce the equilibrium price, but leave the quantity traded unchanged.
• D)​reduce the equilibrium price traded, but increase the quantity traded.

Recognize the illegal wildlife trade and measures to counteract it.

Identify the causes and consequences of endangered species.

Understand the various factors leading to biodiversity loss.

Recognize the significance of amphibians as biological indicators.

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Definitions:

Option Expiration

The predetermined date on which an option contract becomes invalid and the right to exercise it no longer exists.

Interest Rate Collar

A financial derivative strategy used to hedge against interest rate fluctuations by setting upper and lower bounds on interest rates.

Variable Rate

An interest rate that can change over the period of a loan or mortgage based on underlying benchmark interest rates or indices.

Financial Risk Management

The method of safeguarding a company's economic value through the utilization of financial tools to control exposure to risks, notably market risk and credit risk.