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Figure 313 Alt Text for Figure 3

question 133

Multiple Choice

Figure 3.13 Alt text for Figure 3.13a: In figure 3.13a, a graph of intersecting demand and supply curves represents a rising supply of bicycle helmets.
Long description for Figure 3.13a: The x-axis is labelled, Quantity and the y-axis is labelled, as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line, parallel to curve S1, but plotted to the right.A right pointing arrow indicates the change from S1 to S2.
Alt text for Figure 3.13b: In figure 3.13b, a graph of intersecting demand and supply curves represents a falling supply of bicycle helmets.
Long description for Figure 3.13b: The x-axis is labelled, Quantity and the y-axis is labelled, as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line, parallel to curve S1, but plotted to the left.A left pointing arrow indicates the change from S1 to S2.
Alt text for Figure 3.13c: In figure 3.13c, a graph of intersecting demand and supply curves represents a rising demand for bicycle helmets.
Long description for Figure 3.13c: The x-axis is labelled, Quantity and the y-axis is labelled, as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line, parallel to curve D1, but plotted to the right.A right pointing arrow indicates the change from D1 to D2.
Alt text for Figure 3.13d: In figure 3.13d, a graph of intersecting demand and supply curves represents a falling demand for bicycle helmets.
Long description for Figure 3.13d: The x-axis is labelled, Quantity and the y-axis is labelled, as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line, parallel to curve D1, but plotted to the left.A left pointing arrow indicates the change from D1 to D2.
-Refer to Figure 3.13.Assume that the graphs in this figure represent the demand and supply curves for rice.What happens in this market if buyers expect the price of rice to fall?

Definitions:

Employee Stock Options

A type of compensation given to employees, offering the right to purchase company stock at a specific price within a set period.

Call Options

Financial contracts giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders, typically without voting rights.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, subject to business performance.