The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 110

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-If people expect the price of a stock to rise in future, the demand curve for the stock:

• A)becomes positively sloped.
• B)shifts to the right.
• C)becomes horizontal.
• D)becomes vertical.
• E)shifts to the left.

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Definitions:

Repair Costs

The expenses incurred in fixing or maintaining equipment, machinery, or buildings to ensure their proper functioning and longevity.

Sinking Funds

A fund established by an entity to set aside money over time for the purpose of paying off debt or a major expense.

Marginal Revenue Curves

These are graphs that show the relationship between the amount of output a firm sells and the revenue it gains from selling an additional unit of output.

Competitive Firm

A company that operates in a market where there is free entry and exit and no single buyer or seller can influence the market price.