Other Things Remaining the Same,a Rightward Shift in the Supply

question 80

Multiple Choice

Other things remaining the same,a rightward shift in the supply curve will lead to a(n) ________.

• A) increase in the equilibrium price and the equilibrium quantity
• B) decrease in the equilibrium price and the equilibrium quantity
• C) decrease in the equilibrium price and an increase in the equilibrium quantity
• D) increase in the equilibrium price and a decrease in the equilibrium quantity

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Definitions:

Call Option

An option that gives the owner the right, but not the obligation, to buy an asset.

Purchase Shares

The act of buying ownership stakes in a company, typically through its stock, offering potential for investment returns.

Protective Put

A defensive financial strategy that involves buying a put option for a stock that is already owned, giving the holder the right to sell the stock at a specified price, thereby providing a hedge against potential declines.

Downside Risk

The potential for loss in value of an investment, often evaluated in comparison to the expected return.