Refer to the Table That Presents Mike and Janet's Demand

question 176

Multiple Choice

Refer to the table that presents Mike and Janet's demand for apples by the bushel. If they are the only two in the market, which of the following represents a point on the market demand curve? $\begin{array} { | c | c | c | } \hline \text { Price per pedk } & \text { Mike Quantity in pecks } &\text { Janet Quantity in pecks }\\\hline \$ 1 & 22 & 6 \\\hline \$ 2 & 18 & 3 \\\hline \$ 3 & 14 & 0 \\\hline \$ 4 & 10 & 0 \\\hline \$ 5 & 6 & 0 \\\hline\end{array}$

• A)price = $1, quantity = 18
• B)price = $2, quantity = 21
• C)price = $4, quantity = 0
• D)price = $4, quantity = 21

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Definitions:

Sell the Stock

An action where an investor disposes of their ownership in a corporation through the sale of its shares.

Maintenance Margin

The minimum equity amount that must be maintained in a margin account after a purchase has been made, to cover the risk of the investment.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Initial Margin

The minimum amount of equity required to enter into a position as security for performance, used in futures and margin trading.