If the Demand for a Product Decreases,then We Would Expect

question 95

Multiple Choice

If the demand for a product decreases,then we would expect equilibrium price

• A)to increase and equilibrium quantity to decrease.
• B)to decrease and equilibrium quantity to increase.
• C)and equilibrium quantity to both increase.
• D)and equilibrium quantity to both decrease.

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Definitions:

Systematic

Refers to the risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Firm-Specific Risk

The risk associated with an investment in a particular company, including factors such as management competence and product demand.

Total Risk

The complete set of risks associated with an investment, including both systematic and unsystematic risks.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility, while a beta less than 1 indicates lower volatility.