The Price at Which a Market Maker Is Willing to Buy

question 17

Multiple Choice

The price at which a market maker is willing to buy securities is called the

• A)asked price.
• B)bid price.
• C)equilibrium price.
• D)neutral price.

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Definitions:

Rebate

A return of part of the original payment for some service or merchandise, serving as a discount or reduction.

Total Revenues

The overall amount of money generated by a business or economic entity from its activities.

Car Dealership

A business establishment that sells new or used cars at the retail level, typically based on a dealership contract with an automaker.

Elasticity of Demand

A measure of how the quantity demanded of a good or service changes in response to a change in its price.