Jennifer Learns That the Price of CDs Will Be Going

question 244

Multiple Choice

Jennifer learns that the price of CDs will be going up 10 percent next week.She usually buys three CDs per week.What happens to Jennifer's demand for CDs this week?

• A)It does not change because only quantity demanded changes when price changes.
• B)It increases because the price will be lower next week.
• C)It decreases because the price will be higher next week.
• D)It increases because the price will be higher next week.
• E)It decreases because the price will be lower next week.

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Definitions:

Devalues Its Currency

A country intentionally lowering the value of its national currency relative to other currencies to boost exports and improve its trade balance.