Suppose That the Government Finds a Major Defect in One

question 21

Multiple Choice

Suppose that the government finds a major defect in one of a company's products and demands that it be taken off the market. Which of the following would we expect?

• A)The supply of the stock and the price will both rise.
• B)The supply of the stock and the price will both fall.
• C)The demand for the stock and the price will both rise.
• D)The demand for the stock and the price will both fall.

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Definitions:

Existing Customers

Individuals or entities that have previously made purchases from a business and may continue to do so.

Energizer Bunny

A marketing mascot for Energizer batteries, symbolizing longevity and perseverance, known for "going and going".

Brand Name

The name given to a product or service by the company that owns it, used as an identification and marketing tool.

Diversification

A strategy to reduce risk by investing in a variety of assets or undertaking different types of business activities.