Figure 4.3.1. -Look at Figure 4.3.1. If the Price Is Set at Is

question 116

Multiple Choice

Figure 4.3.1.
-Look at Figure 4.3.1. If the price is set at $0.80 per espresso shot, there is a(n) ________ leading to a price ________.

• A) shortage; rise
• B) shortage; fall
• C) surplus; rise
• D) surplus; fall
• E) equilibrium; rise

---

Definitions:

Capital Investment

The purchase of goods or services by a firm to add to its fixed assets to increase its capacity or efficiency in producing goods or services.

Consumption

The use of goods and services by households, one of the major components of an economy’s gross domestic product, indicating economic health and consumer confidence.

Term of a Bond

The length of time until a bond's maturity date, when the principal amount of the bond is due to be paid to the bondholder.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers for the use of their funds.