On a Graph Where the Horizontal Axis Represents Quantity Sold

question 48

Multiple Choice

On a graph where the horizontal axis represents quantity sold and the vertical axis represents selling price, the basic demand curve in a competitive market can be graphed:

• A) as a horizontal line.
• B) as a vertical line.
• C) as a downward sloping line to the right.
• D) as an upward sloping line to the right.
• E) in the same manner as the total revenue curve.

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Definitions:

Initial Margin

This refers to the minimum amount of capital required to enter into a position in the securities or futures market, serving as a deposit to cover potential losses.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation, giving holders voting rights and a share in the company's profits through dividends and the appreciation of stock value.

Rate of Return

A financial return or shortfall on an investment, indicated as a percentage of its initial value.

Short 300 Shares

A trading strategy where an investor borrows 300 shares from a broker and sells them on the open market, planning to buy them back later at a lower price.