This Application addresses the concept of A) inflation and the ...

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This Application addresses the concept of
 
  A) inflation and the housing boom. B) the dangers of high interest rates.
  C) increases in consumer wealth. D) the down-side of leverage.

Question 2

Suppose the current price of a pound of steak is 6 per pound and the equilibrium price is 9 per pound. What takes place?
 
  A) There is a shortage, so the price rises and quantity demanded increases.
  B) There is a shortage, so the price falls and quantity demanded increases.
  C) There is a surplus, so the price falls and quantity demanded increases.
  D) There is a shortage, so the price falls and quantity demanded decreases.
  E) There is a shortage, so the price rises and quantity demanded decreases.

[cat123]

Answer to Question 1

D

Answer to Question 2

E