Refer to the Above Table

question 146

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { Price Per Unit } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 10 & 100 & 295 \\\hline 11 & 150 & 275 \\\hline 12 & 190 & 250 \\\hline 13 & 220 & 220 \\\hline 14 & 245 & 180 \\\hline 15 & 265 & 135 \\\hline\end{array}$$ Refer to the above table. A technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price. As a result of this technological change,
Equilibrium output in this market

• A) decreased by 60 units.
• B) increased by 60 units.
• C) increased by 30 units.
• D) decreased by 30 units.

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Definitions:

Overallotment Option

An underwriting provision that permits syndicate members to purchase additional shares at the original offering price.

Rights Offering

A chance given to existing shareholders to purchase additional shares at a discounted price before the public.

Underwriting Provision

A clause in an insurance policy or financial instrument that details the underwriter's obligations, covering areas like risk assessment and premium determination.