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NEW QUESTION: 1
If the supply of a good decreases, which of the following will generally occur in a market setting?
A. Demand will decrease.
B. The quantity demanded will increase.
C. The quantity demanded will decrease.
An inward shift of the supply curve for a good implies that the equilibrium will occur at a higher price and lower output. This is because the demand curve (which remains constant) and the supply curve now intersect at a higher price and lower output.
NEW QUESTION: 2
If you deposit $400 today into an account paying 8% per year, compounded quarterly, how much will be in the account after 42 months?
There are 14 quarters in 42 months (42 divide 3 =). On the BAII Plus, press 14 N, 8 divide 4 = I/Y, 400 PV,
0 PMT, CPT FV. On the HP12C, press 14 n, 8 ENTER 4 divide i, 400 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.