On a Given Linear Demand Curve, as Price Increases Demand

question 63

Multiple Choice

On a given linear demand curve, as price increases demand becomes:

• A)more elastic.
• B)less elastic.
• C)more negative.
• D)more variable.

---

Definitions:

Stock's Market Value

The market value of a stock represents the price at which a share of the stock is currently trading on the open market.

Winner's Curse

A phenomenon often seen in auctions where the winning bid exceeds the intrinsic value or true worth of an item, leading to a loss for the winner.

IPO Underpricing

The phenomenon where new shares of a company are sold to the public at a price lower than the market price after they start trading.