10. Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a p
rice of $4 per unit, you would have purchased 30 units. What has most likely happened over the last year? [A] Supply has decreased.
[B] Quantity supplied has decreased.
[C] Demand has decreased.
[D] Supply has increased.
[E] Demand has increased.
At the current market price of $4, the quantity demanded is 20 units.
Last year at the same price the quantity demanded was 30 units.
This means that the price remains constant, the quantity has declined from last year. This indicates that the demand has declined over the year shifting the demand curve to the left.
The interest charges on the account(margin) are based on the debit balance in the account. Also, credits that came as a result of short sales are usually not matched off against debits in the account, hence interest charges is based on the $25,000 debit balance.
