The Following Figure Gives Both Supply and Demand Curves for a Certain

question 90

Multiple Choice

The following figure gives both supply and demand curves for a certain product. If the price is $75 per item, would you expect the market pressures to push the price higher or lower?

• A)higher
• B)lower

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding an investment, after initiating a position.

Margin Call

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

Initial Margin

The minimum amount of funds or securities that must be deposited in a margin account before trading on margin, serving as a security for credit risk.

Securities and Exchange Commission

This is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation.