Final answer:
The uncertainty of customer demand for a product is known as demand uncertainty. A rise in financial supply leads to a decline in interest rates. Regarding price ceilings and price floors, they do not shift demand or supply but cause shortages or surpluses by preventing the market from reaching equilibrium prices.
Step-by-step explanation:
The uncertainty of customer demand for a product is termed c. demand uncertainty. It refers to the unpredictability of customer demand and how much they will want over a given period. Factors contributing to demand uncertainty include market trends, consumer preferences, seasonal factors, and economic conditions.
When considering the financial market, a rise in supply (option C) will lead to a decline in interest rates. This is because more supply of funds means lenders have to compete more to loan out their money, which typically leads to lower rates to attract borrowers.
A price ceiling is a regulation that makes it illegal to charge a price higher than a certain level. When a price ceiling is below the equilibrium price, it does not shift demand or supply; instead, it causes a shortage because the quantity demanded exceeds the quantity supplied at that price ceiling level. Hence, the correct answer is d. neither.
In contrast, a price floor, such as a minimum wage, is a regulation that makes it illegal to trade at prices lower than a specified level. When a price floor is above the equilibrium price, it does not shift demand or supply either; rather, it leads to a surplus because the quantity supplied exceeds the quantity demanded at that price floor level. Therefore, the correct answer is d. neither.