Which of the Following Is Most Correct

question 54

Multiple Choice

Which of the following is most correct?

• A) In an efficient market, investors will buy overvalued stock which will drive its price down.
• B) In an efficient market, investors will sell undervalued stock which will drive its price down.
• C) In an efficient market, investors will sell overvalued stock which will drive its price down.
• D) none of these choices are correct.

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Definitions:

Quantity Demanded

Quantity demanded is the amount of a good or service that consumers are willing and able to purchase at a given price within a specific time frame.

Demand

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specified period of time.

Changes in Income

Variations in the amount of earnings received over a period of time, which can affect consumption, savings, and investment behaviors in an economy.

Tastes and Preferences

Factors that influence consumer decision-making, determining the goods or services consumers demand.