Suppose That the Government Finds a Major Defect in One

question 182

Multiple Choice

Suppose that the government finds a major defect in one of a company's products and demands that it be taken off the market. What would we expect?

• A) The supply of the stock and the price will both rise.
• B) The supply of the stock and the price will both fall.
• C) The demand for the stock and the price will both rise.
• D) The demand for the stock and the price will both fall.