If the Price of Avocados Increases, Which of the Following

question 73

Multiple Choice

If the price of avocados increases, which of the following will occur?

• A)There will be a movement down the supply curve for avocados.
• B)The supply curve for avocados will shift to the right.
• C)There will be a movement up the supply curve for avocados.
• D)The supply curve for avocados will shift to the left.

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Definitions:

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

In-The-Money

A term describing an option contract that has intrinsic value, meaning it would be profitable to exercise the option immediately.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time period.

Stock Price

The current market price at which a share of stock can be bought or sold.