The law of demand refers to the a. increase in price that results from an increase in demand for a good of limited supply. b. inverse relationship between the price of a good and the quantity demanded. c. increase in the quantity of a good available when its price increases. d. decrease in price that can be expected as more units of a product are demanded.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.