If the Demand for a Good Falls by Less Than

question 42

Multiple Choice

If the demand for a good falls by less than the supply of the good rises,then the good's equilibrium price will __________ and its equilibrium quantity will __________.

• A) rise; fall
• B) rise; rise
• C) fall; fall
• D) fall; rise

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Definitions:

Draft

An instrument validating an order by a drawer to a drawee to pay a payee.

Imposter Rule

A legal principle concerning negotiable instruments which states that if an impostor induces a payor to issue a check made payable to the impostor, the drawer is liable for the amount to a holder in due course.

Forgery Rule

A legal principle that addresses the falsification of documents and the consequences associated with such acts.

Endorser

An individual or entity that signs a document (usually on its reverse side) indicating support, approval, or transfer of rights.