Which of the Following Increases the Demand for a Good

question 135

Multiple Choice

Which of the following increases the demand for a good or service?

• A) a fall in the price of the good or service
• B) a smaller number of consumers wanting to buy the good or service
• C) a rise in the price of the good or service
• D) a rise in the price of a substitute good or service
• E) a rise in the price of a complement

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Definitions:

Coupon Rate

The interest rate stated on a bond when it's issued which represents the annual interest payment the bondholder will receive.

Selling at Par

Selling at par refers to the condition where a security is sold at its face value, not at a discount or premium.

Call Provision

A clause in a bond's contract that allows the issuer to repurchase and retire the debt before its maturity date, usually at a premium price.

Bond Issuer

An entity, often a corporation or government, that issues debt securities to raise funds.