Holding Supply Constant, an Increase in Demand Leads to

question 47

Multiple Choice

Holding supply constant, an increase in demand leads to

• A) lower prices and higher quantity supplied.
• B) lower prices and lower quantity supplied.
• C) higher prices and higher quantity supplied.
• D) higher prices and lower quantity supplied.

---

Definitions:

Redeem

The act of exchanging something, such as a coupon or financial securities, for a specific value or service.

Maturity Date

is the specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Bond Certificate

A physical document representing the investor's right to receive the principal and interest from a bond issuer.