5-For-1 Pizza Is Operating at the Point Where the Supply

question 108

Multiple Choice

5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve. If the owner decides to increase the price and not change the production level, what will result?

• A) A shortage
• B) A surplus
• C) More profit
• D) A shift in the supply curve
• E) A shift in the demand curve

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Definitions:

Time To Expiration

The duration remaining until the expiration date of a financial instrument, such as an option or futures contract.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Exercise Price

The cost at which an option's owner is allowed to purchase (for a call option) or offload (for a put option) the underlying asset or commodity.

Time Value

The additional amount that investors are willing to pay for an asset, based on the potential for it to increase in value over time.