Imagine you have some extra cash and would like to invest in something that will give you some extra money while you look for a job after graduation. If you invest $177 in a black-pawed Zip (a cat)Beanie Baby, you should remember that its price is most closely tied to:
A)supply and demand.
B)the relation of its changing price to gross domestic product.
C)the price a decade ago because of long-term trend factors.
D)the price at the same time last year because of seasonal factors.

Question

Quizplus · Accepted Answer

The price of a Beanie Baby is most closely tied to supply and demand. As a collector's item, the value of Beanie Babies fluctuates based on their popularity and availability, which are both factors of supply and demand. Therefore, if you invest in a black-pawed Zip Beanie Baby, the amount of money you can make will depend on how much others are willing to pay for it, which is determined by the demand for that specific Beanie Baby.

Imagine You Have Some Extra Cash and Would Like to Invest