Suppose Caviar Sales Soars at the Same Time Price Increases

question 73

Multiple Choice

Suppose caviar sales soars at the same time price increases. What would lead to both a higher quantity sold and higher price of caviar?

• A) A shift in demand to the right and a larger shift in supply to the right.
• B) A shift in demand to the left and a smaller shift in supply to the left.
• C) A shift in demand to the right and a shift in supply to the left.
• D) A shift in demand to the left and a smaller shift in supply to the right.

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Definitions:

Put

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Put Contract

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specific time.

Put Premium

The price that an investor pays for the right, but not the obligation, to sell a security at a specified price before a certain date.

Maximum Profit

The greatest possible gain that can be achieved from an investment, taking into account the cost basis and market conditions.