Use the Figure Below to Answer the Following Question(s)

question 178

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-9

-Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point

• A) the supply of gasoline would shift to S2.
• B) the price of gasoline to consumers would increase from $1.20 per gallon to $1.40 per gallon.
• C) the net price received by producers of gasoline would decline from $1.20 per gallon to $1.00 per gallon.
• D) all of the above would occur.

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Definitions:

Technical Analysis

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume, to identify patterns that can suggest future activity.

Fundamental Analysis

A method of measuring a security's intrinsic value by examining related economic and financial factors.

Beta

An assessment of how the risk or instability of a portfolio or security stacks up against the broader market.

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period.