The Law of Supply and Demand Asserts That

question 129

Multiple Choice

The law of supply and demand asserts that

• A)demand curves and supply curves tend to shift to the right as time goes by.
• B)the price of a good will eventually rise in response to an excess demand for that good.
• C)when the supply curve for a good shifts,the demand curve for that good shifts in response.
• D)the equilibrium price of a good will be rising more often than it will be falling.

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Definitions:

Marginal Rate

The amount of tax applied to an additional dollar of income, often used in the context of progressive tax systems.

Average Rate

A measure used in finance to represent the typical amount of return or rate over a given period.

Fixed Rate

An interest rate that remains constant over the lifetime of a loan or financial instrument.

Average Tax Rates

It reflects the fraction of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.