The Figure Given Below Represents the Equilibrium Price and Output

question 94

Multiple Choice

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals. Figure 4.1 Refer to Figure 4.1.Identify the impact on the price of Restaurant Meals and Delivery Meals following the direction of the shifts in demand in these two industries.

• A)The price of Restaurant Meals rises while the price of Delivery Meals declines.
• B)The price of both Restaurant Meals and Delivery Meals declines.
• C)The price of Restaurant Meals declines while the price of Delivery Meals rises.
• D)The price of both Restaurant Meals and Delivery Meals rises.
• E)The price of Restaurant Meals and the price of Delivery Meals add up to $10.

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Definitions:

Strike Value

The predetermined price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Market Value

The present cost at which a service or asset is available for purchase or sale in a free market.

Volatility Value

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Time Value

The idea that money in hand today is valued higher than an identical sum in the future because of its ability to generate earnings.